Actavis Enters U.S. Generic Drug Industry With Purchase of Amide

International generic drug company Actavis Group is expanding into the U.S. market through the purchase of privately held U.S. generic firm Amide Pharmaceutical.

Headquartered in Reykjavik, Iceland, Actavis has signed an agreement to purchase Amide for $500 million in cash, with up to an additional $100 million to be payable over two years subject to performance goals. The deal is expected to close during the third quarter pending U.S. regulatory approvals.

Amide, based in Little Falls, N.J., manufactures a broad range of solid-dose generic drugs and has a portfolio of approximately 70 marketed products. The firm also has 30 generic products in its pipeline and 12 abbreviated new drug applications (ANDAs) pending at the FDA. The combined company would have a portfolio of more than 500 marketed products and roughly 140 products in development, Actavis said. Following completion of the acquisition, Actavis intends to file at least 15 new ANDAs with the FDA by the end of the year.