Dr Reddy's closes sale of US, select territory rights for neurology drugs

Drug major Dr Reddy's Laboratories on Saturday said it has completed sale of its US and select territory rights for two neurology products to Upsher-Smith Laboratories.

The company has closed the transaction with Upsher-Smith Laboratories LLC, "pursuant to the satisfactory completion of all customary closing conditions including the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended," Dr Reddy's Laboratories said in a filing to BSE.

Under the agreement, Dr Reddy's sold its US and select territory rights for Zembrace Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg, which were commercialised through its wholly owned subsidiary, Promius Pharma, LLC, it added.

Earlier in June this year, Dr Reddy's had said in a regulatory filing that it had entered into a definitive asset purchase agreement with Upsher-Smith Laboratories LLC to sell its US and select territory rights for the two products to the latter.

Under the agreement, Dr Reddy's was to 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, it had said.

Subsequently, Dr Reddy's was also to receive sales based royalties on a quarterly basis, it had said.