Able Labs and InvaGen in generics deal

Able Laboratories and fellow US firm InvaGen have announced the signing of an exclusive agreement for generic drug products utilizing the latter's expertise in pharmaceutical development. Under the terms of the deal, InvaGen will develop, manufacture and supply the generics exclusively for Able. Both companies will share the cost of development, bioequivalency studies and litigation costs, if any. They will also share in the profits.

According to recent market data, the total sales for the six products (which are not identified) are estimated to be approximately $10.3 billion. The first Abbreviated New Drug Application has already been filed with the US Food and Drug Administration and the remaining five products are targeted for submission within the next 12-15 months. InvaGen is sourcing the active pharmaceutical ingredients through its association with a leading Indian pharmaceutical manufacturer on a cost-competitive basis.

Jay Wadekar, chief executive of Able, stated: "the six products with InvaGen represent a substantial market for generic products expected to be launched over the next three to four years. With this collaboration, as well as other business development efforts in conjunction with our own internal development portfolio, we hope to further strengthen our position in the generic pharmaceutical market."