The two promoters of Chennai based generic drug maker Edict Pharmaceuticals have informed Pharmabiz that they have sold their shares in the company to US based PAR Pharmaceuticals for a value of around USD 37.6 million.

The transaction includes PAR’s repayment of certain additional pre-clause indebtedness and it is expected to add to earnings in 2013.

In an interview with this reporter, J Jayaseelan, one of the promoters of Edict, said the company was founded and promoted by him and one Muthusamy Shanmugham (USA), in the year 2009.

Commenting on the transaction, Jayaseelan said, “We are going to invest this money in Delvin Formulations, our marketing company promoted by both of us, to spread its wings in the semi-regulated markets as well. Soon Delvin will be launched in countries like Sri Lanka, Malaysia, Singapore and Philippines.”

He said the company has come up under the leadership of both the directors from the beginning, and has filed 8 ANDAs with the US FDA till now. “Last week we signed the agreement with PAR Pharmaceuticals, US which is the 5th largest generic companies in USA. We raised this much value for the company within two years which was supported by our unique facility.”

As per the deal, the promoters sold their shares to PAR, and Muthusamy and Jayaseelan will have 3 years' complete clause with PAR and need to support the operation during period.

Edict Pharmaceuticals is a developer and manufacturer of solid oral dosage generic pharmaceutical products with a highly skilled research and development team. Edict has currently seven ANDAs with US FDA and one ANDA filed in the name of a development partner with an additional fourteen products in development.

According to sources from PAR, with this deal with the Indian company Edict, it expects to strengthen its R&D business and enhance its manufacturing capacities. “Edict’s facility will add significant operational capacity and provide business continuity protection for our Spring Valley , NY facility,” a senior official from PAR said.

According to Jayaseelan, Edict Pharmaceuticals is a 100 per cent export oriented unit engaged in product development and manufacturing of generic formulations for the USA and other regulated markets. The company has the benefit of technical guidance from renowned scientists from USA and qualified scientists from India. It offers the dual benefit of US standards at Indian costs. The R&D facility at the Edict was built as per the requirements of US FDA, he told Pharmabiz.