Hi-Tech Pharmacal pays $3.6M for rights to Atley's branded pain treatment products

Hi-Tech Pharmacal Co., Inc. (NASDAQ: HITK), a specialty pharmaceuticals company, announced today that they acquired marketing and distribution rights to several unique branded products for the treatment of pain from Atley Pharmaceuticals. Some products are approved and some are pending approval with the Food and Drug Administration (FDA). The Company paid $3.6 million in cash for rights to the products and inventory. Hi-Tech will pay royalties for certain of these products under a license agreement it has assumed.

“We are pleased to add these branded prescription products to our product portfolio. We believe the acquisition of these products creates an excellent synergy with ECR's current product line, and provides additional therapeutic options to help primary care physicians and their patients address problems with pain.”

David Seltzer, Hi-Tech's President and CEO said, "We are pleased to add these branded prescription products to our product portfolio. We believe the acquisition of these products creates an excellent synergy with ECR's current product line, and provides additional therapeutic options to help primary care physicians and their patients address problems with pain."

The Company believes that this acquisition will begin to generate revenue in the very near term, and will be accretive to earnings and cash flow positive within the first 12 months.

ECR Pharmaceuticals will begin training sales representatives to promote the newly acquired products immediately.