Hi-Tech Pharmacal acquires ECR Pharmaceuticals

AMITYVILLE, N.Y. Hi-Tech Pharmacal on Monday acquired the assets of ECR Pharmaceuticals, a privately held branded specialty pharmaceutical company, for $5.1 million in an all-cash transaction to be paid over an eight month period.

“This acquisition allows Hi-Tech to capitalize on ECR’s growing sales, and brings experienced management with a successful track-record developing new products,“ stated David Seltzer, president and CEO of Hi-Tech Pharmacal. “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.”

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.

ECR Pharmaceuticals has 45 sales representatives promoting products to physicians and pharmacists in 12 mid-Atlantic and southern states. ECR had net sales of $13.2 million and operating income of $2 million in calendar 2008. The company will continue to operate under the name ECR Pharmaceuticals.

Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded products. The company specializes in difficult to manufacture liquid and semi-solid dosage. The company's Health Care Products Division is a leading developer and marketer of branded prescription and OTC products for the diabetes marketplace.