Amneal Pharmaceuticals has agreed to buy a 65.1% stake in pharmaceuticals manufacturer and wholesaler AvKARE and its affiliate R&S Northeast for approximately $340m.

AvKARE offers generic medicines under its labels by leveraging partnerships with over 50 generic pharmaceutical vendors. The company primarily caters to the Department of Defense (DoD) and the Department of Veterans Affairs (VA) in the US.

Amneal expects the acquisition to expand its business, enabling growth in the national healthcare market. The deal is also anticipated to boost the company’s manufacturing base in the US, allowing the sale of products to government partners in the country.

Amneal Pharmaceuticals co-founders and co-CEOs Chirag Patel and Chintu Patel said: “Amneal is among the largest generic drug companies domiciled in the US and prioritising our American operations and customers remains a top priority.

“With AvKARE, we believe Amneal will be well-positioned to utilise our extensive US-based manufacturing network to supply products to the federal healthcare market. We look forward to completing the AvKARE transaction and strengthening our focus on providing affordable medicines to patients.”

Amneal portfolio comprises more than 300 generic medicines. The company is working to combine complex dosage forms, including biosimilars, across multiple therapeutic areas.

The company also provides branded pharmaceuticals through its Specialty division, which focuses on the central nervous system and endocrine disorders.

AvKARE executive vice-president Steve Shirley said: “We look forward to working with our entire network of vendor partners, as well as our customers at both the VA and DoD and will continue to identify new opportunities in which we can better serve government agencies.

“We look forward to continuing to utilize our expertise in supplying affordable generic pharmaceuticals to federal agencies through our diverse vendor portfolio and could not be more passionate about entering the next chapter of our company’s growth.”

Subject to customary closing conditions, approvals and antitrust clearance, the acquisition is set to close early next year. Upon closing, AvKARE will work as an independent subsidiary of Amneal.

In April, Amneal sold its subsidiary Creo Pharmaceuticals to Zentiva Group.