Mumbai, Sept. 25: Dr Reddy's Laboratories (DRL) is acquiring the global intellectual property rights of the generic anti-coagulant drug fondaparinux sodium from Alchemia, an Australian drug discovery and development company, for Rs 116 crore.

Alchemia said in a statement that it has entered into a binding term sheet for the sale and under the terms of the sale, it will receive $17.5 million in cash from DRL upon the closing of the transaction.

The company added that in addition to the agreed sale consideration, it has received a payment of $1.15 million for its share of net profit from the sales of fondaparinux in the US for the quarter ending June 30.

Fondaparinux is a generic version of the anticoagulant drug Arixtra. Arixtra has been approved in the US and Europe for the treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE) and is also used for the prevention of thrombosis after major surgeries such as a knee and hip replacement.

It was in 2007 that Alchemia granted the Hyderabad-based company non-exclusive rights to the manufacture of fondaparinux sodium in Active Pharmaceutical Ingredient (API) form and exclusive rights to market fondaparinux in North America.

For these manufacturing and marketing rights, Alchemia was entitled to receive 50 per cent of the net profit generated from the sales of fondaparinux in North America. DRL was responsible for all regulatory filings and market launch.

The generic fondaparinux was approved by the US Food and Drug Administration in 2011 and was launched by DRL. According to Alchemia, it has till date received a total of $21.4 million in revenues from its share of net profits for the US sales of fondaparinux. Alchemia said that in addition to the US, fondaparinux is currently being sold in Canada and India. However, the sales of fondaparinux in these territories are yet to generate any profit, it observed.

In a statement, the Australian company added that should the transaction be approved by its shareholders and the transaction subsequently closed, it will not be entitled to receive any further profit share revenues from fondaparinux sales. Shareholder approval is expected to be sought at its annual general meeting to be held in November.