India’s second-largest drugmaker by revenue, Dr. Reddy will sell its U.S. and select territory rights for Zembrace and Tosymra (used for treating migraine), which were commercialized through its wholly-owned subsidiary, Promius Pharma, according to its exchange filing.
Dr. Reddy’s Laboratories Ltd. has agreed to sell its neurology branded products to Upsher-Smith Laboratories as part of its plan to exit specialty business to focus on profitability.
Dr. Reddy’s will receive $70 million upfront, $40.5 million in the near term and additional financial considerations, including existing contractual obligation and inventory. It will also receive sales-based royalties on a quarterly basis. The sale of proprietary products would help to mitigate operating losses in this business, it said.
Dr. Reddy’s said it will continue to focus on developing its proprietary product pipeline with Tropicamide Fumarate and Tazarotene Lotion (for plaque psoriasis), E7777 (for T-cell lymphoma), and Celecoxib Oral Solution (used for treating pain and inflammation).
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