NEW YORK (The Deal) -- Fresh from AstraZeneca's (AZN) rebuff of its $117 billion offer, Pfizer (PFE) is setting its sights on a much smaller deal in the U.S., as the company said Wednesday it will acquire InnoPharma Inc.

Piscataway, N.J.-based InnoPharma is a private drug development company specializing in sterile injectables. Pfizer is paying $225 million cash upfront and has agreed to $135 million in contingent milestones.

InnoPharma has a portfolio of 10 Food and Drug Administration-approved generics and a pipeline of 19 product candidates under FDA review. More than 30 injectable and ophthalmic products are under development at the company.

It is known for producing difficult-to-make products, such as those requiring complex manufacturing capabilities and bio-equivalency challenges, especially in therapeutic areas of cancer and central nervous disorders.

The acquisition would bring New York-based Pfizer's sterile injectables portfolio to 73 products. The deal "is an important milestone as we continue to look for innovative growth opportunities for our sterile injectables portfolio," John Young, group president of Pfizer Global Established Pharma, said in a statement. "InnoPharma's technical capabilities in bringing complex generics to market, coupled with its strong talent and product pipeline, build on our efforts to develop and commercialize critically important medicines," he noted.

The transaction is expected to close in the third quarter, subject to regulatory approval.

Pfizer turned to Kaye Scholer LLP for legal advice from a team that included Lowell Dashefsky, Laurie Abramowitz, Jefffrey London, David Barr, Andres Liivak, Aaron Gardner, Irv Hepner, Viktoriya Karshenboyem, Brian Witkowski, Amanda Myers and Connie Ericson.

JPMorgan served as InnoPharma's financial adviser. Morgan, Lewis & Bockius LLP provided legal advice.