Pfizer pays $63m for generics portfolio
pharmafile | January 5, 2011 | News story | Sales and Marketing | Akorn, Akorn-Strides, Pfizer, Strides Arcolab, generics, injectables
Pfizer has bolstered its generics portfolio, paying around $63 million for 22 drugs.
The company will buy 16 Abbreviated New Drug Approvals (ANDAs) and six filed ANDAs from Akorn-Strides, a joint venture between US firm Akorn and Strides Arcolab from India.
Generic drug applications are ‘abbreviated’ because they do not require clinical data to establish safety and effectiveness, but instead must only show that their product is bioequivalent, making the process swifter from new drug applications.
The deal is thought to include anti-bacterial and anti-infective injectable medicines.
Illinois-based niche pharma company Akorn will receive $35 million and, according to local reports, Bangalore-based pharma firm Strides Arcolab will receive at least $28 million for its share.
The Akorn-Strides joint venture will continue to manufacture and distribute the approved products until 30 April 2011.
Raj Rai, chief executive of Akorn, said the proceeds from the sale would allow his company to “accelerate our infrastructure improvements, pursue acquisitions and in-licensing of niche pharmaceuticals”.
For its part Akorn accrued $1.9 million from its joint venture with Strides in the nine months to 30 September 2010.
Arun Kumar, executive vice chairman and group chief executive of Strides, told the Business Standard the transaction would further strengthen his firm’s strategic partnership with Pfizer.
Last year Pfizer signed a deal with Strides for 40 injectable drugs, mainly cancer medicines.
Pfizer is looking to diversify its business to help offset the looming US patent expiry of Lipitor in November and made a similar purchase last year, tying up with a leading Brazilian generics firm in October.
Ben Adams
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