Dr Reddy’s sells two neurology products to Upsher-Smith Laboratories

Hyderabad-headquartered pharmaceutical firm Dr Reddy’s Laboratories said that it will sell two of its branded neurology products to US-based pharmaceutical company Upsher-Smith Laboratories.

Dr Reddy’s will sell its US and select territory rights for  Zembrace Symtouch injection and Tosymra nasal spray to Upsher-Smith. Both drugs are sold through Dr Reddy’s wholly-owned subsidiary, Promius Pharma.

Zembrace Symtouch injection and Tosymra nasal spray, generic versions of Sumatriptan drug, are used to treat acute migraine attacks and cluster headaches in adults. Sumatriptan works in the brain to relieve the pain from migraine headaches. It belongs to the group of medicines called triptans.

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. Subsequently, Dr. Reddy’s will receive sales-based royalties on a quarterly basis.

“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-recognized migraine specialty business in the US and we look forward to our partnership with Upsher-Smith”, said G.V. Prasad, Co-Chairman and CEO, Dr. Reddy’s Laboratories Ltd.

Dr Reddy’s said that the closing of the transaction will be subject to various customary closing conditions including antitrust review under Hart-Scott-Rodino Act.

The Hart–Scott–Rodino Antitrust Improvements Act of 1976, commonly known as the HSR Act, is a set of amendments to the antitrust laws of the United States.

The HSR Act states that parties must not complete certain mergers, acquisitions or transfers of securities or assets, including grants of executive compensation, until they have made a detailed filing with the US Federal Trade Commission and Department of Justice and waited for those agencies to determine that the transaction will not adversely affect US commerce under the antitrust laws.

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.