Mumbai: Orchid Chemicals & Pharmaceuticals Ltd said on Wednesday it has signed an out-licensing and distribution deal with US-based Alvogen for marketing the Indian company’s eight oral non-antibiotic formulations in US.
Under the terms of the agreement, Alvogen would pay certain dossier license fees to Orchid and the two companies would share profits from these products, it said in a statement.
“The moment these products go off-patent, we would be one of the few people to launch these products,” K. Raghavendra Rao, managing director, Orchid Chemicals & Pharmaceuticals, told CNBC-TV18 television channel.
“...So the launch is going to be from next year and the eight products would be launched sequentially.”
The combined market size of these products in the US is about $8 billion annually, the company said in a statement.
“This size is quite interesting and we should be able to make reasonable turnover and profit out of this deal,” he added.
Orchid Chemicals is the first-filer for paragraph-IV status for three of these eight products.
“This gives us exclusive marketing rights for these products for at least six months post-launch,” he added.
The eight products covered under the deal are from the therapeutic segment, the company said, adding “The two companies would share the legal expenses and bio-study costs.”
Earlier, on 29 April, Orchid Chemicals said it had settled a patent litigation with Forest Laboratories Inc regarding its generic drug Memantine tablets.
At 12:19 pm, shares of Orchid Chemicals were trading flat at Rs152.4 in a Mumbai market that was down 0.95%.