Prasad: Development deal

Mumbai, May 6: Dr Reddy’s Laboratories, the Hyderabad-based pharmaceutical major, today announced the acquisition of Trigenesis Therapeutics Inc, an US-based privately-owned dermatology company for $11 million.

With this buy, the company, with a strong research base, has forayed into the $6-billion niche dermatology segment in the US.

The takeover will give Dr Reddy’s access to certain products and proprietary drug-delivery technology platforms for developing a pipeline of differentiated drugs in the dermatology segment. It will broaden the company’s line of treatment options available in the market.

In a statement, DRL said that while the total investment outlay is $11 million, it would make additional contractual payments during the course of development of the products and technology platforms and royalties on sales to Skye Pharma Plc and SilvaFoam LLC pursuant to the existing Trigenesis agreements.

DRL chief executive G. V. Prasad said, “We see this acquisition as an important element of our overall corporate strategy in facilitating our transition into a speciality pharmaceutical company focused on the US market.”

DRL has been targeting on the US market, billed as the largest for pharmaceuticals, over the past few years. It is investing in research to power its growth in this market. DRL has been marketing generics and drug applications in the US for the past few years.

The company produces finished dosage forms, active pharmaceutical ingredients and biotechnology products.