Dr. Reddy's Laboratories Ltd. on Friday said it has entered into a definitive agreement with Upsher-Smith Laboratories to sell the U.S. and select territory rights of its neurology branded products—Tosymra and Zembrace—for over $110 million (approximately Rs 765 crore).
"Under the agreement, Dr Reddy's will receive $70 million as upfront consideration, $40.5 million in near-term milestones and additional financial considerations including, existing contractual obligation and inventory," the company said in a regulatory filing. Dr Reddy's also said it will receive sales-based royalties on a quarterly basis.
Both the products are commercialised through Dr Reddy's wholly-owned subsidiary, Promius Pharma.
The company said the drugs were designed and developed to address unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies.
Dr Reddy's Laboratories Co-Chairman and Chief executive Officer GV Prasad said, "...In a short time, we created a well-recognised migraine specialty business in the U.S. and we look forward to our partnership with Upsher-Smith".
The closing of the transaction is subject to various customary closing conditions, the company said.
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