 "Dr Reddy's to sell rights of 2 neurology drugs to Upsher-Smith for $110 mn")
Dr Reddy's Laboratories Friday said it has entered into a definitive agreement with Upsher-Smith Laboratories to sell the US and select territory rights of its neurology branded products -- Tosymra and Zembrace -- for over $110 million (approx Rs 765 crore).
"Under the agreement, Dr Reddy's will receive $70 million as upfront consideration, $40.5 million in near-term milestones and additional financial considerations including, existing contractual obligation and inventory," the company said in a regulatory filing.
Subsequently, Dr Reddy's said it will receive sales-based royalties on a quarterly basis.
Both the products are commercialised through Dr Reddy's wholly-owned subsidiary, Promius Pharma.
The company said Tosymra and Zembrace were designed and developed with the goal of addressing unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies.
Dr Reddy's Laboratories Co-Chairman and CEO GV Prasad said, "This is a testament to our strong research and development capabilities, and delivering solutions to unmet needs of patients. In a short time, we created a well-recognised migraine specialty business in the US and we look forward to our partnership with Upsher-Smith".
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The closing of the transaction is subject to various customary closing conditions, the company said.
Shares of Dr Reddy's were trading 1.44 per cent lower at Rs 2,549 apiece on the BSE.