Dr. Reddy’s Laboratories Ltd announced on Friday that it will acquire the portfolio of branded and generic injectables from Illinois-based Eton Pharmaceuticals for approximately $50 million.
Under the terms of the contract, Dr. Reddy’s acquired the wallet from Eton in exchange for an initial payment of approximately $5 million, in addition to potential future payments of up to $45 million. The acquisition will support Dr. Reddy’s efforts to accelerate and increase patient access to affordable medicines, the company’s statement said.
The Company’s acquired portfolio includes 2 abbreviated new drug applications (ANDAs) cleared for cysteine hydrochloride for the United States, NDAs for injection Biorphen (phenylephrine hydrochloride) and Rezipres (ephedrine hydrochloride), each having nine distinct strengths and presentations. There is now only one dosage of Rezipres and Biorphen commercially available in the United States. With little competition in injectable pharmaceuticals, the purchase will support Dr. Reddy’s institutional business in the United States, according to the statement released by the company.
Marc Kikuchi, General Manager, North America Generics at Dr. Reddy’s, commented on the acquisition saying, “Long before the COVID-19 pandemic, access to certain critical care products for hospitals and healthcare systems has raised concerns. This acquisition provides our North American organization with a foundational footprint to help address products that are not always readily available to patients. “For these reasons and more, I believe we are well positioned to integrate the portfolio and grow the business,” he added.
According to North Carolina-based pharmaceutical company IQVIA, the total addressable market (TAM) for these products in the United States is expected to be more than $174 million for the fiscal year ending April 2022.
On Friday, shares of Dr Reddy’s closed up 0.27% at 4,308 rupees each on BSE.
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