Dr Reddys to sell Tosymra, Zembrace to Upsher-Smith Labs for Rs 765 crore approx
Dr Reddy's (Dr Reddys) Labs 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.
New Delhi: 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 USD 110 million (approx Rs 765 crore).
"Under the agreement, Dr Reddy's will receive USD 70 million as upfront consideration, USD 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 speciality business in the US and we look forward to our partnership with Upsher-Smith".
The closing of the transaction is subject to various customary closing conditions, the company said.
Dr Reddy's Lab was founded by Anji Reddy, who previously worked in the mentor institute Indian Drugs and Pharmaceuticals Limited, of Hyderabad.
Dr Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas. The company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology products.
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