Financial Daily from THE HINDU group of publications
Thursday, May 27, 2004
Financial Daily from THE HINDU group of publications Thursday, May 27, 2004 |
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Corporate
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Alliances & Joint Ventures Orchid inks deal with Par for US marketing Our Bureau
Mr R. Narayanan, Chairman, Orchid Chemicals & Pharmaceuticals Ltd, flanked by Mr K. Raghavendra Rao, Managing Director (left), and Mr C.B. Rao, Deputy Managing Director, at a press conference in Chennai. — Shaju John
Chennai , May 26 ORCHID Chemicals & Pharmaceuticals on Wednesday announced it had entered into an agreement with the US-based Par Pharmaceuticals to exclusively market its oral cephalosporin formulations in the US. A company press release said the agreement covers seven formulations (drugs in final form such as tablets), of which two are still protected by product patents in the US. The agreement runs over 10 years and the companies have the option to mutually renew it. The Orchid Managing Director, Mr K. Raghavendra Rao, said five of the seven products covered under the deal required manufacturing processes that did not infringe on existing patents. He added the company had developed non-infringing processes for all five. According to the agreement, the intellectual property on the drugs would remain with Orchid and the drugs would be supplied to Par under a profit sharing arrangement. Additionally, Par would reimburse Orchid's R&D and other developmental costs. Orchid's agreement with Par follows a similar agreement with Apotex in June 2003 to supply eight cephalosporin injectibles for the US market. Following the two deals, Orchid has tied up distribution arrangements in the US for 15 end-products. The company release said the current retail market for formulations covered by both Apotex and Par deals is estimated at over $3 billion. The deal with Par does not interfere with Orchid's business of exporting bulk drugs to the US, said Mr Rao. The companies have an internal dispute redressal mechanism in the event of differences. As a last resort, arbitration proceedings would be held in the UK. Par Pharmaceuticals, which is listed in the New York Stock Exchange, manufactures and markets generic drugs (drugs that have lost their product patents).
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