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Drug-maker Lupin and its subsidiaries have entered into a licence agreement with Abbott Laboratories and Laboratoires Fournier SA for eight patents on cholesterol-lowering drug Fenofibrate.
The agreement between the two parties also covered continuations, extensions, re-isues, re-examinations and so on, a Lupin note said, without divulging details.
The agreement essentially “erases the patent uncertainty” on Lupin's products, Mr Nilesh Gupta, Lupin's Group President and Executive Director, told Business Line .
Lupin had, in 2009, bought Antara, a brand of Fenofibrate from Oscient Pharmaceuticals under the procedures of the US Bankruptcy Court, at about Rs 185 crore for the product and related assets and inventory.
While the latest revenue clocked by Antara was not available, the brand had recorded net sales of $70 million in 2008, Lupin had said in the past, and its patent expires in August 2020.
Original patent
Fenofibrate was developed by Groupe Fournier SA and acquired in 2005 by Solvay Pharmaceutical. In late 2009, Solvay's pharma business was bought over by Abbott.
Oscient was paying a royalty on the patent to Abbott, Mr Gupta said, without divulging whether Lupin too would have to pay royalty on the patents.
Of the eight patents in the agreement, three are not listed, two cover the active pharmaceutical ingredient and three cover formulations or the finished dosage forms, said Mr Ranjit Kapadia, HDFC Securities' Vice-President (Institutional Research).
The deal is effectively between the patent-holder and Lupin, he said, indicating that it would clear Lupin's way to make and market the product in the US. As a disclaimer, Mr Kapadia said, that he held Lupin stocks and had recommended it to his clients.
In 2009, Lupin had also sold its abbreviated new drug application (ANDA – to be able to make and market the generic similar of the medicine in the US) to Dr Reddy's Laboratories. In fact, it had also settled and resolved the pending litigation regarding the ANDA with Oscient. But this had no relevance on the latest agreement with Abbott, Mr Gupta said.
Lupin shares were up over 1 per cent on the BSE, at Rs 419 on Tuesday.
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