By BS Reporter
Drug maker Panacea Biotec has entered into a strategic alliance with Kremers Urban Pharmaceuticals for 11 niche generic drugs in the US, which has an estimated market size of $4 billion at the innovator level.
Under the agreement, Panacea would be responsible for research, development, registration and commercial supplies of the products while Kremers Urban would be responsible for marketing, sales and distribution.
“Panacea and Kremers Urban will share profits from these products in the ratio of 75:25, respectively,” Panacea’s general manager, business diversification, P D Karan, said. The Delhi-based biotechnology company will first launch its generic drug Tacrolimus capsules in the US in November as part of this partnership. The drug, an immunosuppressant, is used during organ transplantation. The total US market for Tacrolimus is $892 million, the company said.
“This would be followed by a series of high barrier to entry generic product launches that are being developed by the company,” Panacea Joint Managing Director Rajesh Jain said.
This is Panacea’s second such collaboration with a foreign firm in near past. Recently, in September the vaccine maker entered into a strategic alliance with US-based Osmotica Pharmaceutical to develop and market 18 niche generic medicines for several markets, including the US. The pact with Osmotica included product identification, research and development, and manufacturing of generic versions of complex original drugs by Panacea, while its American partner would spearhead product registration, legal matters, marketing, sales and distribution.
The pact with Kremers is also on the same lines but with a different set of product portfolio.
Shares of Panacea Biotec on Monday gained momentum on stock exchanges after the announcement. Its shares on Monday ended at Rs 108.10 on the Bombay Stock Exchange, up 1.98 per cent from their previous close after touching a high of Rs 116.60 during the day.