Dr Reddy Laboratories has entered into a $110 million deal with the US-based Upsher-Smith Laboratories, LLC to sell its neurology branded products Tosymra, Zembrace and Symtouch.
Dr Reddy Laboratories has entered into a $110 million deal with the US-based Upsher-Smith Laboratories, LLC to sell its neurology branded products Tosymra, Zembrace and Symtouch, it announced on Friday. The product will be sold in the US and select territory. Dr Reddy will get $70 million as upfront payment while the rest of the payment will be made in “near-term milestones and additional financial considerations including, existing contractual obligation and inventory,” the company said in a BSE filing. The company is also entitled to sales-based royalties on a quarterly basis.
The company has sold the rights for Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg. These products are commercialized through Dr Reddy’s wholly owned subsidiary, Promius Pharma, LLC. Tosymra and Zembrace were aimed to cater to the unmet needs of episodic migraine patients who do not wish to go ahead with therapies option, Dr Reddy said in a statement. Speaking about the deal, Anil Namboodiripad, Ph.D., Senior Vice President, Proprietary Products and Head, Promius Pharma said that Upsher-Smith has established a strong presence in neurology and hence the company is glad to partner with them.
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Previously, Dr Reddy had reported a 44% hike in its consolidated net profit at Rs 434.4 crore for Q4FY19 against Rs 302.20 crore in the previous year. However, on a sequential basis, the company’s profits were down by 10%. Speaking on the results, GV Prasad, CEO and co-chairman had said that the company witnessed a good year with a significant turnaround in the financial performance and steady progress on the quality front. It will also continue to focus on profitable growth, he added.
Shares of Dr Reddy’s were trading 1.44 per cent lower at Rs 2,549 apiece on the BSE on Friday.