Pfizer buys Akorn-Strides portfolio of generics for $63 million

Facing generic competition itself for its biggest-ever selling drug Lipitor (atorvastatin), global pharma behemoth Pfizer (NYSE: PFE) is making another foray into the generics market in a deal with USA-based drugmaker Akorn (Nasdaq: AKRX).

Under the terms of the accord, Pfizer will gain rights to sell 16 Abbreviated New Drug Approvals and six filed ANDAs made by Akorn’s US joint venture with Indian drugmaker Strides Arcolab - Akorn-Strides. For its part, Akorn will receive $35 million in cash from a deal worth $63 million to the JV. Akorn-Strides will continue to manufacture and distribute the approved products until April 30, 2011.

In the three quarters ended September 30, 2010, Akorn recognized $1.9 million in revenue and around $2.0 million in adjusted EBITDA as a result of its participation in the Akorn-Strides JV, the US firm stated.