Livemint: July 15, 2016
Hyderabad: Granules India Ltd on Thursday said its wholly-owned subsidiary Granules Pharmaceuticals Inc. has entered into an agreement to acquire 12.5% stake in US-based drug maker USpharma Inc. but did not disclose the amount.
“This investment will enable Granules to participate in product selection and have right of first refusal to market the select products which are under development by USpharma,” the company said in a statement.
USpharma is a development-stage pharmaceutical company specializing in research, development and manufacture of high entry-barrier generic pharmaceuticals, including controlled-release, controlled-substance and patent-challenge products.
USpharma, in collaboration with manufacturing partners, had submitted five abbreviated new drug applications (ANDA) with para-IV certifications, out of which four ANDAs have already been out-licensed to Granules exclusively.
USpharma has formulation, development and manufacturing facilities in Philadelphia and Mumbai, and an analytical laboratory in Kansas City.
“The agreement with USpharma complements our internal product development programme, and expands our product portfolio by leveraging external product development capabilities,” said Krishna Prasad Chigurupati, chairman and managing director of Granules.
“The successful development of limited-competition products by USpharma provides further long-term growth for the company,” Chigurupati said.
Granules in June said it has acquired the exclusive rights from USpharma Windlas LLC to market and distribute four ANDAs in the US—Fingolimod for treatment of multiple sclerosis, platelet inhibitor Prasugrel, cardiac arrhythmia drug Dronedarone and antipsychotic drug Lurasidone.
USpharma Windlas is a joint venture between USpharma and Windlas Healthcare Pvt. Ltd.
For the year ended March, Granules posted revenues of Rs.1,431 crore.
Granules, which makes active pharmaceutical ingredients (API) or bulk drugs, intermediates and finished dosages, is a leading producer of paracetamol, metformin, guaifenesin and ibuprofen.
The company is making a concerted effort to break into the high-margin US formulations market through acquisitions and licensing agreements.
Shares of Granules rose 2.27% and were trading at Rs.148.65 on the BSE at 11.20am, while the benchmark Sensex index declined 0.14% to 27,776.42 points.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.