Dr. Reddy's Laboratories gained 1.41 to Rs 4,370.50 after the drug maker said it acquired a portfolio of branded and generic injectable products from US-based Eton Pharmaceuticals, Inc.
The portfolio includes the Biorphen (phenylephrine hydrocholoride) injection and Rezipres (ephedrine hydrochloride) injection NDAs with nine separate combinations of strengths and presentations and one first-to-file approved ANDA for Cysteine Hydrochloride for the U.S. one strength each of Biorphen and Rezipres are currently commercially available in the U.S. The acquisition will complement Dr. Reddy's U.S. institutional business with limited competition injectable products.
Under the terms of the agreement, Dr. Reddy's acquired the Eton portfolio for an upfront payment of approximately $5 million in cash, plus contingent payments of up to $45 million. The acquisition supports Dr. Reddy's efforts to accelerate and expand affordable medications for patients.
Marc Kikuchi, chief executive officer, North America Generics, Dr. Reddy's, said, "Long before the COVID-19 pandemic, there have been concerns about access to some critical care products for hospitals and health systems. This acquisition provides our North America organization with a foundational footprint to help address products that are not always readily available for patients. For these and many other reasons, I believe we are well-positioned to integrate the portfolio and grow the business."
According to IQVIA, the value of total addressable market for these products in the U.S. is approximately $174 million for the calendar year ending in April 2022.
Meanwhile, Dr Reddy's Laboratories on Friday said it has entered into a settlement agreement with Indivior Inc. and Indivior UK, and Aquestive Therapeutics, Inc. Pursuant to the agreement, the company will receive payments totalling $72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the company's generic buprenorphine and naloxone sublingual film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg dosages, including Indivior's and Aquestive's patent infringement allegations and the company's antitrust counterclaims. As part of the settlement, the underlying litigation will be dismissed.
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Dr Reddy's Laboratories is an integrated pharmaceutical company. It offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Its major markets include - USA, India, Russia & CIS countries, and Europe.
The pharmaceutical major's consolidated net profit tumbled 82.6% to Rs 97 crore on a 15% increase in revenue from operations to Rs 5436.80 crore in Q4 FY22 over Q4 FY21.
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