Drug maker Dr Reddy’s Laboratories Ltd on Wednesday said it has completed the purchase of intellectual property (IP) rights for anti-coagulant generic drug Fondaparinux sodium. In September, the company had announced plans to buy the rights from Australian company Alchemia Ltd for around $17.5 million.
Fondaparinux is a copycat version of the drug Arixtra used to treat deep vein thrombosis and pulmonary embolism. Anti-coagulants are used when blood has to be prevented from clotting. It can also be used to prevent clotting-related diseases after hip or knee surgeries.
Dr Reddy’s has around 50% share in the US market for Fondaparinux.
Alchemia had received shareholder approval to sell the rights of the drug, at its annual general meeting held earlier this month. The sale agreement is effective from July this year.
Of the total sale amount, Alchemia received $17.5 million in cash and $1.5 million as share of sale proceeds for the June quarter. In fact, the two companies, prior to making the intellectual rights agreement, had decided that Dr Reddy’s would exclusively market the drug in areas except North America. The agreement had taken place in 2012, after which Dr Reddy’s shared net profits from the sale of the drug with Alchemia.
Dr Reddy’s has recently faced the scrutiny of US drug regulator US FDA for not meeting the standards in drug production at three facilities in Telangana and Andhra Pradesh.
The shares of the company at BSE dropped 1.87% to ₹ 3,375.55 apiece, while the benchmark Sensex slipped 1.48% to 25,482.52 points.