Amneal Pharmaceuticals LLC (NASDAQ: IPXL), a privately-held generic pharmaceutical manufacturing company headquartered in New Jersey, has agreed to a definitive business combination with California-based speciality pharmaceutical company, Impax Laboratories Inc., in an all-stock transaction, it was reported on Tuesday.

According to the deal, Amneal Holdings members will own approximately 75% and Impax shareholders will own approximately 25% of the new company's pro forma shares on an as converted basis.

The combined company is to be named Amneal Pharmaceuticals Inc., and will have a generics business that will rank as the fifth largest in the United States by gross revenue and a growing, high-margin specialty franchise. The companies said that the transaction is expected to enhance the combined organisation's competitive position and allow for continued success in an evolving generics market.