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Aceto to pay up to $462M for products, assets of two companies

Aceto Corporation headquarters in Port Washington.

Aceto Corporation headquarters in Port Washington. Credit: Newsday / Barry Sloan

Aceto Corp. Wednesday evening announced a deal to purchase products and assets of a New Jersey drugmaker and an affiliated distribution company for up to $462 million.

The Port Washington-based manufacturer of chemicals and generic drugs said it is buying 47 drugs that already are being sold, another 31 approved by regulators for sale and more than two dozen drugs in development from Citron Pharma LLC in East Brunswick, New Jersey.

The acquisition, which must be approved by federal antitrust regulators, would nearly double the number of products now sold by Aceto’s Rising Pharmaceuticals division, also based in New Jersey.

Citron founder and CEO Vimal Kavuru will become president of Rising and join Aceto’s board of directors.

Aceto is also purchasing assets of a Citron affiliate, Lucid Pharma LLC, which shares the same address as Citron. Lucid sells generic drugs to federal government agencies including the Department of Veterans Affairs.

“This transaction significantly expands our roster of commercialized products and pipeline of products in development,” Aceto CEO Sal Guccione said.

He also said sales of the Citron and Lucid assets being purchased will total $195 million for the year ended Dec. 31 and generate a pre-tax profit of about $40 million.

Aceto board chairman Albert Eilender said that after the transaction, drug sales would represent 80 percent of Aceto’s revenue, an increase of 10 percentage points.

Separately, Aceto last night reported its profit for the three months ended Sept. 30 fell 53 percent, year over year, to $4.4 million. Sales in the quarter dropped 4 percent to $128 million from a year ago.

Both announcements came after the stock market closed. In after-hours trading, Aceto shares were $17.62, unchanged from their close Wednesday.

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