BRIEF—Dr Reddy's sells two neurology brands to Upsher-Smith

Indian drugmaker Dr Reddy’s Laboratories has entered into a definitive asset purchase agreement with Upsher-Smith Laboratories, to sell its US and select territory rights for Zembrace Symtouch (sumatriptan injection) 3mg and Tosymra (sumatriptan nasal spray) 10mg, which are commercialized through its wholly-owned subsidiary, Promius Pharma, LLC.

Under the agreement, Dr Reddy’s will receive $70 million as upfront consideration, $40.5 million in near term milestones and additional financial considerations including, existing contractual obligation and inventory.

Subsequently, Dr Reddy’s will receive sales based royalties on a quarterly basis.

The closing of the transaction is subject to various customary closing conditions including antitrust review under Hart-Scott-Rodino Act.

“This is a testament to our strong R&D capabilities, and delivering solutions to unmet needs of patients. In a short time, we created a well-recognized migraine specialty business in the US and we look forward to our partnership with Upsher-Smith,” said GV Prasad, co-chairman and chief executive of Dr Reddy’s Laboratories.