Pharmaceutical company Alvogen has agreed to purchase Dream Pharma, based in South Korea, for $187 million in cash.

Alvogen said on Wednesday that Dream will be acquired through its Asian subsidiaries, creating one of the largest generic pharmaceutical companies in South Korea with a strong platform for regional exports. Asia-Pacific is one of the fastest-growing regions for generic pharmaceuticals, the company said.

Dream adds a complementary portfolio of over 100 products to Alvogen's existing business in South Korea. The acquired company has a 35% share of the local market for obesity products.

This transaction represents a significant milestone in Alvogen's plans to become one of the top five regional players in the Asia-Pacific market. The company noted that the market remains very fragmented, providing an opportunity for further industry consolidation. Alvogen aims to build a selective, high quality product portfolio in markets such as Korea, Taiwan, Thailand, China, Japan and Vietnam.

Robert Wessman, president and CEO of Alvogen, commented that the addition of Dream will help the company gain scale in the Korean market and a broader product offering.

"This transaction further underlines our ability to act as a powerful industry consolidator," he added.

Alvogen currently has manufacturing and R&D facilities in the United States, South Korea and Romania, and commercial operations in over 30 countries around the world. The company has 1,800 employees.

The acquisition of Dream remains subject to regulatory clearance but is expected to be completed in the fourth quarter of 2014.