Dr Reddy's Laboratories Limited announced on Friday that it has entered into a definitive asset purchase agreement with Upsher-Smith Laboratories, pursuant to which the company would sell its US and select territory rights for Zembrace Symtouch (sumatriptan injection) and Tosymra (sumatriptan nasal spray). Earlier these products were commercialised through Dr Reddys' wholly owned subsidiary Promius Pharma.
"Under the agreement, Dr Reddy's will receive $70 million as up-front consideration, $ 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," the company said.
The closing of the transaction is subject to various customary closing conditions including antitrust review under Hart-Scott-Rodino Act of the US government.
"This is a testament to our strong R&D capabilities, and delivering solutions to unmet needs of patients. In a short time, we created a well-recognised migraine specialty business in the US and we look forward to our partnership with Upsher-Smith," Dr Reddy's co-chairman and CEO G V Prasad said.'
Tosymra and Zembrace were designed and developed with the goal of addressing unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies, according to Anil Namboodiripad, head of Promius Pharma.