Dr. Reddy's Laboratories on Friday announced that it entered into an agreement to divest two branded neurology products in the US and select territories to Upsher-Smith Laboratories in a deal potentially worth more than $110 million. Specifically, the agreement involves the injectable migraine drug Zembrace SymTouch (sumatriptan) and a nasal spray formulation of the treatment sold under the name Tosymra.
Dr. Reddy's chief executive GV Prasad remarked "this is a testament to our strong R&D capabilities, and delivering solutions to the unmet needs of patients," adding that "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."
Under the agreed terms, Dr. Reddy's will receive an upfront payment of $70 million and is eligible for up to $40.5 million in near-term milestones and other financial considerations. The Indian drugmaker will also receive quarterly royalties based on sales.
Upsher-Smith CEO Rusty Field stated that Zembrace SymTouch and Tosymra are a "great strategic fit for our company," while the deal "underscores [our] commitment to significantly [expand our] pipeline and [diversify our] product portfolio through both internal development and targeted acquisition."
The FDA approved Zembrace SymTouch in 2016 for adults with acute migraine episodes, with or without aura, who are inadequately managed with existing treatment regimens. Tosymra was cleared in the US this past January for use in adults with acute migraine, with or without aura.
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