Pending Acquisition

6 Months Ended

Jun. 30, 2011

Pending Acquisition

Pending Acquisition

Note 19 – Pending Acquisition:

During the three months ended June 30, 2011, we entered into a definitive agreement to purchase privately-held Edict Pharmaceuticals Private Limited, a Chennai, India-based developer and manufacturer of generic pharmaceuticals, for up to $37.6 million in cash and our repayment of certain additional pre-close indebtedness.   The acquisition will be accounted for as a business combination under the guidance of FASB ASC 805 Business Combinations.  The operating results of Edict will be included in our consolidated financial results from the date of acquisition.  The operating results will be reflected as part of the Par Pharmaceutical segment.  We intend to fund the purchase from cash on hand.

Our purchase of Edict is subject to the Reserve Bank of India's approval of certain terms in the definitive agreement and the satisfaction or waiver of other conditions to closing.  Our purchase of Edict also is subject to resolution of related litigation.  Refer to Note 14 – "Commitments, Contingencies and Other Matters" for further details.