Par Pharma nabs injectables specialist JHP for $490M in private-equity auction

Generics maker Par Pharmaceutical inked a deal to pay $490 million for JHP Pharmaceuticals, a specialty pharma company owned by Warburg Pincus. Par will gain a portfolio of branded and generic injectable drugs, which are hot commodities these days.

As Par CEO Paul Campanelli notes, sterile injectable drugs are difficult to make. Just consider the FDA's accounting of recalls over the past few years; it's full of vials containing glass and plastic particles, microbes and more. Manufacturing difficulties have put many injectable meds on the FDA shortage list as well.

So, buying a company that can reliably turn out injectable products will give Par a quick boost, Campanelli said in a statement: "The acquisition of JHP immediately expands Par's presence in the rapidly growing market for injectables ... JHP represents a perfect complement to Par's strategy and product line."

Among JHP's products are Aplisol, a branded generic that's used in diagnosing tuberculosis, and Adrenalin, its branded generic form of epinephrine injection. The company also has a pipeline of 34 injectables, 17 of which are under review by the FDA. JHP also brings along a manufacturing plant in Rochester, MI.

Apparently, all that was enough to justify the $490 million price. That's a significant addition to Par's business, which TPG acquired in 2012 for $1.9 billion. According to The Deal Pipeline, Warburg Pincus made a hefty return on the deal, having bought JHP last year for $195 million; the private equity firm conducted an auction to find its buyer. J.P. Morgan Securities served as financial adviser, with Ropes & Gray representing Par and Willkie Farr & Gallagher handling JHP's side.

- see the Par Pharma release
- read the Deal Pipeline story

Special Report: Top Biopharma M&A Deals of 2012 - Par Pharmaceutical