Amneal (an American publicly traded generics and specialty pharmaceutical company. The company is headquartered in Bridgewater, New Jersey) is getting a 65.1% majority stake in AvKARE (the trusted Industry Source for Pharmaceuticals, Medical/Surgical items, Laboratory Supplies, Biologics and Healthcare, Capital Equipment) and its related affiliate doing business as R&S Northeast for the assumed business value of $340 million.
Following the termination of the business, AvKARE will work on a standalone basis as an autonomous subsidiary of Amneal.
Сomprehensive Private-Label Providers
AvKARE is one of the most comprehensive private-label providers of generic pharmaceuticals in the U.S. government agency sector, initially focused on serving the Department of Defense and the Department of Veterans Affairs. Nowadays, the company uses its connections with more than 50 generic pharmaceutical merchants to offer a proprietary line of specially packaged products under its labels.
“When we re-joined Amneal as Co-CEOs in August, we described a vision for our long-term approach,” said Amneal co-founders and co-CEOs Chirag Patel and Chintu Patel. “While we live remarkably focused on organic growth, we also recognized that M&A would be a key component of our growth story and that we would venture the right events that strategically fit our business.
And we defined what we would look for: events to complement our current delivery system, provide us with justifiable, durable revenue streams and, ultimately, earnings that are accretive to ours. The AvKARE business meets all of these criteria, and we are passionate about the value we assume it will create for sufferers, stockholders, and other ones.”
A Differentiated Platform
The Patels maintained, “The addition of AvKARE and its differentiated platform presents a unique possibility for Amneal to expand our business and open growth possibilities in the large, complicated, and growing national healthcare market.
Amneal is among the largest generic drug companies domiciled in the United States, and prioritizing our American operations, and customers remains a top priority. With AvKARE, we believe Amneal will be well-positioned to utilize our extensive U.S.-based manufacturing network to supply products to the national healthcare market.
We look forward to completing the AvKARE transaction and strengthening our focus on providing affordable medicines to patients.”
“We are pleased to enter into this transaction with Amneal, a leading provider of affordable medicines to federal agencies and one of our long-term business partners,” said Steve Shirley, CEO of R&S Northeast and AvKare executive vice president.
“We look forward to working with our entire network of vendor partners, as well as our customers at both the VA and DoD, and will continue to identify new opportunities in which we can better serve government agencies.”
Shirley added, “Besides, we will continue to retain a large ownership interest in AvKARE and manage operations with our current leadership team as a self-supporting subsidiary of Amneal. We look forward to continuing to utilize our expertise in supplying affordable generic pharmaceuticals to federal agencies through our diverse vendor portfolio. We could not be more passionate about entering the next chapter of our company’s growth.”