Taro Pharmceuticals have acquired Canada’s Zalicus Pharmaceuticals. Taro is the US subsidiary of India’s largest drug maker Sun Pharma. Zalicus is engaged in the development of a pain management drug candidate coded Z944. Zalicus is a subsidiary of Boston-based Epirus Biopharmaceuticals, which is focused heavily on development of biosimilar drugs.
Taro made a cash payment of $3.8 million (about Rs 25 crore) in addition to issuing a non-interest bearing, limited recourse promissory note of an equal amount with maturity date of July 1, 2017
In a filing on October 1 with the US Securities and Exchange Commission, Epirus announced it had entered into and closed a share purchase agreement with Taro for the sale of all shares of Zalicus that holds product candidate Z944 and certain related assets. Epirus had merged itself with Zalicus in July 2014.
An update last year on the drug Z944 suggests it successfully completed Phase one clinical trials and was poised to enter Phase two trials.
In case Taro chooses to further develop the compound and repays the promissory note, Epirus said it will be entitled to additional payment of $7.5 million and upon achievement of certain regulatory filings and approvals the payment may reach $30 million (about Rs 195 crore). Taro, it said, also agreed to pay mid-single digit percentage royalty if the product is commercialised globally.
In August, Taro scored a significant approval from the US FDA for Keveyis, a drug used to treat patients with periodic paralysis, a form of a rare debilitating disease. Analysts have forecast that the product will fill a critical need gap and may fetch $650 million in peak sales, depending on pricing and the number of treated patients.
During the first quarter of the year, Taro registered revenues of $215 million and a net income of $104 million. Taro has seen stagnating volumes in the past few quarters amid increasing competition and customer consolidation.
An update last year on the drug Z944 suggests it successfully completed Phase one clinical trials and was poised to enter Phase two trials.
Taro's new business aims at strengthening its focus on proprietary drugs.
View Latest News