Hyderabad based pharma major, Dr Reddy's has finally completed the purchase of worldwide exclusive Intellectual Property Rights (IPR) for its generic anti-coagulant drug, Fondaparinux sodium, from Australian partner Alchemia for $17.5 million (around Rs. 115 crore).
The company had earlier signed a deal for this transaction in September. Dr Reddy's Laboratories said in a statement that the shareholders of Alchemia approved the sale of Fondaparinux at the company's annual general meeting, post which Dr Reddy's and Alchemia have executed a purchase and sale agreement, together with various patent assignment deeds.
Under the binding terms of the sale, Alchemia has received $17.5 million in cash from Dr Reddy’s upon the closing of the transaction.
In 2007, Alchemia granted Dr Reddy’s non-exclusive rights to manufacture fondaparinux sodium in active pharmaceutical ingredients form and exclusive rights to market fondaparinux in the North America.
"In exchange for these manufacturing and marketing rights, Alchemia received a payment of $1.15 million for its share of net profit from the US – only sales of Fondaparinux for the quarter ending 30 June 2015,” Alchemia said in a statement.s entitled to receive 50% of the net profit generated from sales of fondaparinux in North America.
Alchemia’s generic fondaparinux was approved by the US Food and Drug Administration (USFDA) in July 2011 and launched by Dr Reddy’s in the US shortly after.
Dr Reddy’s is responsible for finishing of the product, all regulatory filings and market launch.
In addition to the US, fondaparinux is currently being sold in Canada and India
Fondaparinux is a generic version of the anticoagulant drug Arixtra, which is approved in the US and Europe for the treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE). It is also indicated for prevention of DVT after major surgery, such as knee and hip replacement worldwide.
To date, the Alchemia has received a total of $21.4 million in revenues from its share of net profits for US sales of Fondaparinux. These revenues are net of (after) the company’s contribution of $5 million towards cost of goods improvements.
The closing of Dr Reddy's shares were at Rs 3,377, down 1.83 per cent on BSE.
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