Financial Daily from THE HINDU group of publications
Friday, Jun 28, 2002

Port Info

Group Sites

Corporate - Alliances & Joint Ventures

Ranbaxy in licensing deal with German co

Our Bureau

NEW DELHI, June 27

RANBAXY Laboratories Ltd (RLL) has stepped on the accelerator with regard to its activity in the German market.

Close on the heels of acquiring Procter & Gamble Pharmaceutical's Veratide, Ranbaxy has inked a licensing deal with Germany's Schwarz Pharma for the former's `new chemical entity' (NCE) to treat `benign prostrate hyperplasia' (BPH).

Schwarz Pharma obtains the exclusive rights to develop, market and distribute the product in the US, Japan and Europe while Ranbaxy retains the rights to all other markets, according to an official communique issued here today.

In the event of successful development, Schwarz Pharma will pay Ranbaxy a total of $42 million over the next five to six years, including an upfront payment of $6.3 million, followed by royalties on commercialisation.

The agreement also provides for RLL to manufacture and supply finished formulations of the product to Schwarz Pharma.

The deal has to be approved by the Reserve Bank of India, the release said.

In India, the compound (RBx-2258) is currently in clinical trials Phase II. Schwarz Pharma now takes over the clinical development in the US, Europe and Japan. This includes further clinical phase I studies.

The compound (Schwarz Pharma code: SPM 969) is a uro-selective alpha-blocker which has patent protection until 2018.

The aim is to develop an once-a-day formulation with rapid relief of symptoms, especially an improved efficacy on LUTS (lower urinary tract symptoms).

The worldwide BPH market in 2001 amounted to $2.2 billion. In the US, Europe and Japan, the respective BPH market for SPM 969 had a volume of $ 2 billion with double digit growth rates.

Schwarz Pharma develops and markets drugs for unmet medical needs with focus on the central nervous system, urology and cardiovascular diseases.

In 2001, the company achieved a global sales of euro 768 million, the release said.

Send this article to Friends by E-Mail

Stories in this Section
Tata Steel geared for price hikes

ASC Enterprises applies for DTH licence
Silverline proposal
Sterlite Industries' assurance to court
WorldCom scandal to hit Indian operations
Whirl called WorldCom
Tata Teleservices to buy 50.83 pc in Hughes Tele
Feelers to IOC on MRPL stake
Parke-Davis — Pfizer merger swap ratio set at 9:4
Ranbaxy in licensing deal with German co
Tata Steel inks pact with TN for titanium dioxide project
Ranbaxy buys Veratide from P&G in Germany
ISO 9001 for Bhima Jewellers
Sodexho getting fat with corporates' voucher-culture
Little progress in Ambani's condition
Naidu visits Breach Candy Hospital

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line