Drug firm Strides Arcolab today said it has cancelled its licencing and supply agreement with US-based KV Pharmaceuticals and will pay $7.25 million (about Rs 33 crore) as part of settlement.
In a filing to the Bombay Stock Exchange (BSE), the company said it has entered into a settlement agreement with KV Pharmaceuticals for cancellation of licencing and supply agreement and redemption of preference shares.
As per the settlement agreement the supply and licencing agreement entered into with KV Pharmaceuticals in May 2005 was cancelled. All intellectual properties for products developed under the agreement will be retained by Strides, it said.
Strides said it is to pay an amount of $7.25 million (about Rs 33 crore), as payment towards the settlement with the US based firm.
It further said 491,606 cumulative preference shares of face value of Rs 1,000 each, issued to KV Pharmaceuticals in the year 2005 were redeemed at face value along with accrued dividend thereon.
Shares of Strides closed at Rs 425.50 on the BSE, down 0.47 per cent from its previous close.