Mumbai: Dr Reddy's Laboratories Ltd on Friday said it has signed a definitive pact with Upsher-Smith Laboratories, LLC to sell its neurology branded products.
Under the agreement, Dr Reddy's will receive $70 million as upfront consideration, $40.50 million in near-term milestones and additional financial considerations including, existing contractual obligation and inventory. It will also get sales-based royalties on a quarterly basis.
"Dr. Reddy's would sell its US and select territory rights for ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRA™ (sumatriptan nasal spray) 10 mg, (formerly referred to as "DFN-02"), which are commercialized through its wholly owned subsidiary, Promius Pharma, LLC", the company said in a BSE filing.
The closing of the transaction is subject to various customary closing conditions including antitrust review under Hart-Scott-Rodino Act, according to the exchange notification.
At 11.22 am, shares of Dr Reddy's Lab traded at ₹2529.65 on BSE, down 2.18% from previous close, while India's benchmark equity index Sensex was down 0.48% at 39,559.98.