Mumbai, June 17: Cadila Healthcare’s overseas arm is acquiring the assets of US-based Nesher Pharmaceuticals Inc for an undisclosed sum.

Cadila, part of the Zydus group, said Zydus Pharmaceuticals USA Inc through its subsidiary Zynesher Pharmaceuticals USA LLC had entered into an agreement to acquire the assets of Nesher.

Nesher, which operates as the generic subsidiary of KV Pharmaceutical, based in Missouri, USA, has expertise in niche therapies. The company added that the broad-based assets purchase agreement included assets and assumption of certain liabilities.

The assets include Nesher’s existing and pipeline of abbreviated new drug applications (ANDAs), certain manufacturing facilities and a research and development laboratory.

ANDAs are applications for making generic drugs. Cadila Healthcare expects that following the acquisition, Zydus, its overseas arm, will be able to manufacture and distribute generic controlled substances in the US market. These cannot be imported from other countries. The market for controlled substances medications in the US is estimated at $7 billion.

A controlled substance is a drug or chemical whose manufacture or use is regulated by the government.

Commenting on the acquisition, Pankaj Patel, chairman & managing director, Zydus Cadila, said while the company had looked at value accruing opportunities, the acquisition would give it access to difficult-to-develop product pipeline, expertise and infrastructure. This is expected to add value to its operations in the US.

Nesher’s ANDA pipeline includes eight existing filings and five under development.

Cadila Healthcare feels these drugs have a huge market potential as they belong to high-growth and niche segments, which have a combined estimated market size of over $2 billion.

Scrips of Cadila Healthcare today closed at Rs 900 on BSE, down 1.43 per cent from its previous close.