India's Orchid buys US drugmaker Karalex; completes deal with Hospira

Chennai, India-based generic drugmaker Orchid Chemicals & Pharmaceuticals says that it had entered into an agreement to acquire Karalex Pharma, a US-based generic marketing and sales services company headquartered in New Jersey, through an all-cash deal for an undisclosed amount. The transaction is expected to close by this month subject to customary closing conditions.

Through this acquisition, Orchid says it has created its presence in the front-end US market and will be able to reach its generic products to American customers directly.

Karalex, established in 2007, has launched over 100 generic pharmaceutical products in the USA with a combined value in excess of $1 billion, according to Orchid. The acquisition is expected to add revenue of $20 million in the current year and has potential to reach $100 million in next few years, the Indian firm suggested.