Orchid Chemicals & Pharmaceuticals has entered into an exclusive agreement with Alpharma to develop and manufacture ten non-antibiotic formulations in specific dosage forms and strengths, which would then be distributed and marketed by the later in US and Europe. According to a release issued to the BSE, the company would commence supply of these products once they go off-patent, progressively from 2007 based on the company's regulatory filings and approvals. The current market size of the ten products in the US and Europe aggregates to around $10 billion. As per the agreement, Alpharma would provide development funding to Orchid for the products based on milestones while the net profits arising from marketing would be shared between both the partners.Orchid has chalked out plans to replicate its regulated generics model in diverse therapeutic groups. The company is establishing new US FDA compliant infrastructure to develop and manufacture drugs in these non-cephalosporin segments, the release added. Mr. K Raghavendra Rao, Managing Director, of Orchid said: "This alliance further diversifies and reinforces our regulated market growth strategy, which has so far focussed on generic antibiotics- We are happy that a market leader like Alpharma has chosen Orchid to develop, manufacture and supply a whole range of products from varied product groups. We are confident of building a strong revenue model from the lucrative regulated markets starting from 2005 in the cephalosporin antibiotic segment and from 2007 in the non-cephalosporin space".
