Par Pharmaceutical Companies Inc. ( PRX ) recently announced that it has completed the acquisition of India-based generic company Edict Pharmaceuticals. Par Pharma paid $20.5 million at the close of the transaction along with a debt repayment of $4.4 million.

Edict Pharma, located in Chennai, India, develops and manufactures solid oral dosage generic pharmaceuticals and currently has 11 abbreviated new drug applications (ANDA) filed with the US Food and Drug Administration (FDA).

Par Pharma had entered into a definitive agreement to acquire Edict Pharma in May last year. At that time, Par Pharma had said that it expects the transaction to be accretive in 2013.

We note that this acquisition will help boost the company's revenues. Par Pharma recorded revenues of $215.4 million in the third quarter of fiscal 2011, 8.1% below the year-ago figure of $234.4 million. Lower royalty income and a slip in the sales of the company's generic products primarily led to the decline.

Par Pharma has been quite active in making acquisitions and entering into deals lately. Last year, in November, the company acquired Anchen Pharmaceuticals for $410 million in cash. Additionally, in October 2011, Par Pharma acquired the rights to three products from Teva Pharmaceutical Industries Ltd. ( TEVA ), following the latter's acquisition of Cephalon.

We currently have a Neutral recommendation on Par Pharma. The stock carries a Zacks #3 Rank (Hold rating) in the short run. We believe that these acquisitions will help boost the company's top- and bottom-line, which has been declining in the last few quarters.