Pact prop for Alembic Pharma
Mumbai, Dec. 10: Novartis, the world's No. 2 medicine company, will further develop and commercialise an experimental drug from Rhizen Pharmaceuticals SA, an arm of India's Alembic Pharma.
The news sent Alembic shares up 1 per cent on the BSE.
The experimental drug is meant to treat respiratory disorders.
Novaris will make an upfront payment to Switzerland-based Rhizen. Further payments are in order as the experimental drug crosses through various stages of development till ready for sale. Rhizen will get still more as the drug receives regulatory approvals and crosses sales milestones. Besides, it will receive royalty on annual sales.
The agreement gives Novartis exclusive marketing rights across the world.
The lead compound has demonstrated anti-inflammatory and immunomodulatory activity in pre-clinical systems and models representative of respiratory diseases. It holds promise in the treatment of human airway disorders, the company said.
On the BSE the scrip finished at Rs 672.80, a gain of Rs 4.20, over the previous close of Rs 668.60.
The Gujarat-based company derives 56 per cent of its revenues from branded and generic drugs from the international markets.
During the second quarter of this year, Alembic saw turnover from generic drugs in the overseas markets rising 342 per cent to Rs 559 crore.
The cumulative Anda (abbreviated new drug applications) filings by the company stands at 71.