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Dr Reddy’s to acquire injectable product portfolio from Eton Pharma for $50 mn

Dr Reddy’s to acquire injectable product portfolio from Eton Pharma for $50 mn

The acquisition will support Dr. Reddy's efforts to speed up and increase patient access to affordable medications, the company’s statement read.

Dr Reddy’s to acquire injectable product portfolio from Eton Pharma for $50 mn Dr Reddy’s to acquire injectable product portfolio from Eton Pharma for $50 mn

Dr Reddy's Laboratories Ltd on Friday announced that it will acquire the branded and generic injectable products portfolio of Illinois-based Eton Pharmaceuticals for approximately $50 million.

According to the terms of the contract, Dr Reddy's acquired the Eton portfolio in exchange for an upfront payment of about $5 million, in addition to potential future payments of up to $45 million. The acquisition will support Dr. Reddy's efforts to speed up and increase patient access to affordable medications, the company’s statement read.

The portfolio acquired by the company comprises of 2 authorised Abbreviated New Drug Applications (ANDAs) for Cysteine Hydrochloride for the United States, the Biorphen (phenylephrine hydrochloride) Injection and Rezipres (ephedrine hydrochloride) Injection NDAs, each having nine distinct strengths and presentations. There is now just one strength of Rezipres and Biorphen available commercially in the United States. With little competition in injectable pharmaceuticals, the purchase will support Dr Reddy's institutional U.S. business, according to the statement released by the company. 

Marc Kikuchi, Chief Executive Officer, North America Generics at Dr. Reddy's commented on the acquisition, stating, "Long before the COVID-19 pandemic, there have been concerns about access to some critical care products for hospitals and health systems. This acquisition provides our North America organization with a foundational footprint to help address products that are not always readily available for patients.” “ For these and many other reasons, I believe we are well-positioned to integrate the portfolio and grow the business," he went on to add.

According to North Carolina-based pharmaceutical company IQVIA, the total addressable market (TAM) for these products in the United States is expected to be worth over $174 million for the fiscal year ending in April 2022.

Shares of Dr Reddy's on Friday closed 0.27 per cent higher at Rs 4,308 apiece on BSE.

 

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Published on: Jun 24, 2022, 5:28 PM IST
Posted by: Soumyashis Prashanth, Jun 24, 2022, 5:24 PM IST