American drug maker Mylan and two Indian pharmaceutical companies have lined up to purchase Chennai-based Bafna Pharmaceuticals. The financial terms of the acquisition were not confirmed, according to two people familiar with the deal who were cited in a report published by The Economic Times.

Bafna was founded in 1981. The firm specializes in manufacturing injectable and generic drugs. One of the sources said the company's flagship brand is Raricap, a popular anti-anemia drug. The source also said Raricap was acquired by Johnson & Johnson in 2011, said the report.

The deal would help Bafna eliminate its debt. Part of the debt will be due in the next few months, the report added.

If Mylan pushes through with the deal, this will be the company's second Indian acquisition. The firm had acquired Strides Arcolab's vaccine and injectable drug unit recently. The latest transaction was valued at USD760 million, The Economic Times reported.