Amneal invests $340m in generics distributor
AvKARE is a drug manufacturer and wholesaler providing its products to organizations including the US Department of Defense, Veterans Hospitals, NASA, TriCare, Dept. of Agriculture, Indian Health Services, the USDA, the US Army, Air Force, Navy, and USMC.
In addition, the company is in collaboration with group purchasing organizations such as Amerinet, Innovatix, HealthTrust Purchasing Group, IPC, Broadlane/MedAssets and Premier.
Upon completion of the acquisition, which will cost Amneal $340m (€306m), and includes AvKARE’s affiliate doing business as R&S Northeast, AvKARE will operate as an independent subsidiary of Amneal.
The transaction is expected to be complete in early 2020, while AvKARE’s founders will continue to independently manage the operations of the business, with Steve Shirley, the company’s CEO, reporting to Amneal’s co-CEO, Chirag Patel.
The acquiring company stated that this move will enhance its presence in the federal healthcare market of the US, adding as well that the transaction ‘underscores’ the existing potential of Amneal’s manufacturing base, enabling the sale of products to US government partners.
Patel stated that the acquisition was a ‘key element’ of the company’s long-term strategy, since it provides an opportunity to “complement our existing distribution network, provide us with defensible, durable revenue streams and, ultimately, earnings that are accretive to ours.”
