Natco ties up with Akorn

Natco Pharma Limited has announced a tie-up with US-based Akorn, Inc for supply of active pharmaceutical ingredients (API) and margin-sharing to commercialise two ANDA (abbreviated new drug application) injectable drug products.

The two drug products, which will focus on the anti-emetic and cancer-related markets, have a combined current market size of about $875 million, Natco stated in a press release.

Under the API supply and margin-sharing agreement, Natco will be responsible for supply of the ingredients while Akorn will be responsible for manufacturing, regulatory submissions, marketing and distribution in the hospital, clinic and home healthcare markets in the US and Canada.

"This arrangement helps in bringing development expense and compete with vertically integrated firms in a competitive generic business," Natco chairman and managing director, Chowdary V Nannapaneni, said.

According to Akorn president and chief executive officers, Arthur S Przybyl, Natco has agreed to supply API for both products in exchange for a gross margin-sharing business relationship. Akorn manufactures and markets sterile speciality pharmaceuticals.