Dr. Reddy's purchases injectable goods from Eton Pharma for $50 million

Dr Reddy's Laboratories Ltd. announced on Friday that it has paid USD 50 million to USA-based Eton Pharmaceuticals, Inc. to buy a portfolio of branded and generic injectable pharmaceuticals.

The portfolio includes the NDAs (New Drug Applications) for Biorphen (phenylephrine hydrochloride injection) and Rezipres (ephedrine hydrochloride injection) with nine different combinations of strengths and presentations, according to a press release from the Indian pharmaceutical company. There is also one first-to-file approved ANDA (abbreviated new drug application) for Cysteine Hydrochloride for the USA. Rezipres and Biorphen are both commercially marketed in the USA in a single strength.

According to the company, the acquisition will add injectable goods with little to no competition to Dr Reddy's USA's institutional market. According to the terms of the contract, Dr Reddy's obtained the Eton portfolio in exchange for an upfront cash payment of about USD 5 million as well as potential future payments of up to USD 45 million.

According to the press statement, the acquisition helps Dr. Reddy's initiatives to extend and speed up the availability of patient-friendly pharmaceuticals. "Access to some critical care goods for hospitals and health systems has been a source of worry long before the COVID-19 outbreak. With the support of this acquisition, our North American organisation will have a solid base to address the issue of patients' inconsistent access to certain products. Marc Kikuchi, Chief Executive Officer, North America Generics, Dr Reddy's, stated, "I believe we are well-positioned to integrate the portfolio and grow the business for these and many more reasons.

According to Dr Reddy's, who cited industry data, the entire addressable market for these medications in the USA is expected to be worth over USD 174 million for the fiscal year ending in April 2022.