Dr. Reddy's to sell US neurology products business
Leading pharma company has signed a pact to sells it neurology branded products to US-based company Upsher-Smith. The deal is for Dr. Reddy's US and other select territory rights for Zembrace SymTouch, and Tosymra.
Dr. Reddy's wholly-owned subsidiary, Promius Pharma, LLC operates its neurology branded products in the US. Zembrace SymTouch, and Tosymra provide solutions to unmet needs of migraine patients. The products address to a discrete segments of patients suffering from episodic migraine, who need treatment options beyond their current therapies
Under the terms of the agreement signed between Dr. Reddy's and Upsher-Smith Laboratories, LLC, Dr. Reddy's will receive US$70 million upfront, followed by US$40.5 million as near-term milestones and additional financial considerations apart from existing contractual obligation and inventory. Dr. Reddy's will also receive sales-based royalties on a quarterly basis. The transaction is subject to various customary conditions including US antitrust laws (Hart-Scott-Rodino Act).
Reacting to this development, the stock of Dr. Reddy Laboratories was quoting Rs. 2,544.00 per share, down by Rs. 42.15 or 1.63 per cent at 10:00 hours on Friday. The stock opned at Rs. 2,586.00 per share.