Ranbaxy To Get Rs 75 Crore From Eli Lilly

Ranbaxy is all set to get $15 million (about Rs 75 crore) from Eli Lilly & Company. Eli Lilly will pay Ranbaxy Labora tories Ltd $10 million as the two have terminated their agreement concerning a strategic alliance for multi-source generic products. In addition, Eli Lilly will pay Ranbaxy Pharmaceu- ticals Inc, a wholly-owned subsidiary of Ranbaxy Laboratories Ltd in the US, another $5 million for terminating their manufacturing agreement.

Both the agreements were terminated this month itself. Ranbaxy Laboratories is slated to get its $10 million before the end of the month. Eli Lilly has already paid $5 million to Ranbaxy Pharmaceuti- cals Inc on Tuesday.

The agreements between Ranbaxy and Eli Lilly were signed some years back. It is also worth noting that Ranbaxy had bowed out of its joint venture with Eli Lilly in India about an year ago. And had recieved a payment of Rs 78 crore for selling its stake to the partner.

As per the agreement between Eli Lilly and Ranbaxy Pharmaceuticals Inc, the former was manufacturing six to seven products for the latter in the therapeutic segments of pain management and central nervous system. These products, which have an annual billing of $6-8 million, will now be manufactured as well as marketed by Ranbaxy Pharmaceuticals Inc which has a manufacturing facility at New Jersey.

To facilitate the process, Eli Lilly has transferred the technical knowhow for the manufacture of these products to Ranbaxy Pharmaceuticals Inc, besides assigning and transferring the intellectual property rights comprising certain patents and trademarks to the company.