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news.Hi-Tech Pharmacal, a developer and marketer of generic and branded products, has signed a definitive agreement under which the company acquired the assets of ECR Pharmaceuticals, a privately held branded specialty pharmaceutical company for $5.1 million in an all-cash transaction, which will be paid over an eight-month period.
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Additionally, Hi-Tech may pay up to $4 million in performance incentives tied to future ECR product sales and profits. Under the terms of the acquisition Hi-Tech receives rights to ECR’s product line, including branded prescription products for the treatment of allergy, headache and dermatitis/poison ivy. The company will continue to operate under the name ECR Pharmaceuticals.
David Seltzer, president and CEO of Hi-Tech Pharmacal, said: “This acquisition allows Hi-Tech to capitalize on ECR’s growing sales, and brings experienced management with a successful track record developing new products.
“The addition of ECR makes Hi-Tech a more diverse and flexible company, as we have an additional outlet to market differentiated products currently in development. We believe that the ECR acquisition will be earnings accretive and cash flow positive in the near term, and contribute to the company’s long-term growth.”