Having suffered a setback in February this year in failing to launch products from its portfolio, Dr Reddy's Laboratories has now got into the acquisition mode. It has acquired the US-based Trigenesis Therapeutics at a total investment outlay of $11m.
"We have switched over our strategy to Plan B to focus on speciality drugs in view of the setback we received on the Amlodipine front," Satish Reddy, MD, Dr Reddy's, said.
Dr Reddy's had earlier suffered a setback when the US court of appeals for the Federal Circuit declared that the company's hypertension drug did infringe on Pfizer's patent.
This meant that Dr Reddy's could not go ahead with the launch of its own generic version of Pfizer's patented drug Norvasc (API: Amlodipine Besylate).
"The acquisition is an important element of our overall corporate strategy in facilitating our transition into a speciality pharmaceutical company focused on the US market. The deal provides us an exciting opportunity to apply various proprietary drug delivery technologies in creating a pipeline of differentiated drugs that will broaden the range of available treatment options and establish Dr Reddy's in the prescription dermatology
"The dermatology market size is pegged at $6bn, according to the estimates of Trigenesis.
The annual growth rate of the market is estimated at 10%," Mr Reddy added. Dr Reddy's will make additional payments during the course of development of the products and technology platforms and royalties on sales to Skye Pharma and SilvaFoam in pursuit of the agreements of Trigenesis Therapeutics.
This was stated in the company's press release. According to a press release from SkyPharma last month, the company has licensed its dermatology assets to Trigenesis consisting of the residual rights to three marked products, rights to six pipeline products and rights to a range of six proprietary and complementary dermatological delivery technologies.
"The question of making additional contractual payments would arise only if products are successfully developed and launched. It will be too early to speculate on the total amount that will be paid to Skye Pharma and SilvaFoam if all the products are developed," Mr Reddy clarified.
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