Pharmaceuticals giant Dr Reddy’s Laboratories Ltd has entered into a definitive agreement to sell two branded neurology products to the US-based Upsher-Smith Laboratories LLC.
As per the agreement, Dr Reddy’s will sell the rights to the Zembrace and Tosymra products in the US and select territories, the Indian drugmaker said in a stock-exchange filing. Tosymra and Zembrace are used by patients suffering from episodic migraine.
Dr Reddy's will get an upfront consideration of $70 million (Rs 487 crore at current exchange rates) for the products. It will also receive $40.5 million in near-term milestones and other considerations including existing contractual obligations and inventory. Besides, the drugmaker will receive sales-based royalties on a quarterly basis.
Dr Reddy’s co-chairman and chief executive officer GV Prasad said that the company had created a migraine speciality business in the US in a short time and that the agreement was proof of its research and development capabilities.
Dr Reddy’s is selling the neurology products through wholly owned subsidiary Promius Pharma LLC. The transaction is subject to US regulatory and antitrust approvals.
Established in 1919, Upsher-Smith is a generics pharmaceutical company and is part of the Japan-based Sawai Pharmaceutical Co. Ltd. The company offers customers a broad range of generics and branded medications.
Founded in 1984, Dr Reddy’s makes active pharmaceutical ingredients, generic drugs, biosimilars and differentiated formulations. It also provides custom pharmaceutical services. Its therapeutic areas of focus include gastrointestinal, cardiovascular, diabetology, oncology and pain management.
In October last year, the company agreed to sell its API plant in Hyderabad to generics pharmaceuticals company Therapiva Pvt. Ltd.
Therapiva is a joint venture between Omnicare Drugs India Pvt. Ltd, which is a 100% subsidiary of Abu Dhabi-based Neopharma LLC, and Laxai Life Sciences Pvt Ltd.
Dr Reddy’s had said at the time that the sale was part of its plan to streamline manufacturing and reduce costs.
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