AstraZeneca rejigs diabetes drug deal with Sun Pharma

AstraZeneca Pharma India, the local unit of the global pharmaceuticals giant, said it has decided to end its marketing agreement with Indian pharmaceutical giant Sun Pharma for two diabetes medications after the Indian company acquired a license to manufacture the same locally.

In a separate statement, Sun Pharma said it has acquired the patent license for the two drugs – dapagliflozin and dapagliflozin with metformin – from AstraZeneca AB Sweden with effect from today.

“Sun Pharma has now acquired the rights to Trademarks “Oxra”, “Oxramet” and “Oxraduo” in India from AstraZeneca AB, Sweden, parent company of AstraZeneca Pharma India Limited, with effect from 28th May 2021. In addition Sun Pharma has also taken a patent license to manufacture and commercialize Dapagliflozin and Dapagliflozin with Metformin combination in India from AstraZeneca AB with effect from 28 th May 2021,” the Indian company said.

Because of this, the Indian unit of AstraZeneca had signed an agreement to terminate the five-year-old supply contract with Sun Pharma.

“Under the Transition Supply Agreement, Sun Pharma will continue to promote and distribute dapagliflozin and the combinations of dapagliflozin with metformin under the brand Oxra and Oxramet until such period of time as mutually agreed between the parties, post which all supplies to Sun Pharma from AstraZeneca India shall cease,” the British-Swedish company said.

The original supply agreement was signed in March 2016, and under it, AstraZeneca was to supply dapagliflozin to Sun Pharma, which was to market it under the name Oxra.

Later, the agreement was expanded to include the combination of dapagliflozin with metformin, a widely used blood sugar controlling medication.

AstraZeneca said the medications will continue to be available under its own brands Forxiga and Xigduo. In addition, said AstraZeneca, it is also selling a combination of dapagliflozin and saxagliptin in India under the brand name Qtern.

Sun Pharma is largest Pharma Company in India and the fourth largest in the world and offers formulations in various therapeutic areas, such as cardiology, psychiatry, neurology, gastroenterology and diabetology.

In a subsequent statement, AstraZeneca India also said it had decided to cancel its distribution with Abbott Healthcare for the drug.