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Sun Pharma has acquired skin cancer drug Odomzo from Swiss drug giant Novartis for $175 million (around Rs 1,172 crore) as it looks to grow its specialty drug portfolio.
The transaction gives Sun Pharma its first branded oncology product. Odomzo (molecule name Sonidegib) has been approved for sale in 30 countries including those in Europe, US, and Australia. The global market for cancer drugs is over $100 billion and US is the single largest market.
Sun Pharma said an agreement has been signed for an upfront payment of $175 million and additional milestone payments.
Novartis acquired GSK's entire oncology portfolio last year in a multi-billion dollar deal and thus sale of this skin cancer drug has also come as a surprise to analysts tracking the sector.
"Odomzo gives us an opportunity to meaningfully expand our already established branded dermatology business and support our expansion into branded oncology with a launched brand," Kirti Ganorkar, Global Head Business Development at Sun Pharma, said.
Dermatology and ophthalmics have been identified as key therapy segments by Sun Pharma management as it ramps up its specialty business.
"Our initiatives in this segment cover the entire value-chain, from in-licensing early-to-late stage clinical candidates, as well as getting access to on-market patented products," Sun Pharma MD Dilip Shanghvi said in his letter to shareholders in FY 2016 annual report. The company has indicated that building a specialty drug pipeline may see a short-term impact on its profitability. It will also increase spend on research and development to around 9% of sales in FY 16.
Odomzo was approved by the USFDA in July 2015. It is indicated for the treatment of adult patients with locally advanced basal cell carcinoma.
