Mumbai, Dec. 22: Drug major Sun Pharmaceutical Industries today announced that it would acquire a branded oncology product - Odomzo - from Novartis for an upfront payment of $175 million.
An agreement to this effect has been signed between the subsidiaries of both the companies and it will close following an anti-trust clearance, Sun Pharma told the bourses.
Besides an upfront payment, the agreement includes additional milestone payments.
Odomzo was approved by the US Food and Drug Administration in July 2015.
This acquisition is expected to support Sun Pharma's expansion into the branded oncology segment.
Odomzo is indicated for the treatment of adult patients with locally advanced basal cell carcinoma.
The Mumbai-based pharma major said around 70 per cent prescribers for this drug were dermatologists and the rest oncologists.
"Odomzo gives us an opportunity to meaningfully expand our already-established branded dermatology business and support our expansion into branded oncology," Kirti Ganorkar, global head - business development - Sun Pharma, said.
Following the announcement, the shares of Sun Pharma ended marginally lower on the bourses.
The scrip finished at Rs 609.20, lower by 0.85 per cent, on the BSE.
"We look forward to collaborate with the medical community to bring this novel therapy to the market. Odomzo complements and enhances our existing dermatology franchise. This acquisition has the potential to leverage and expand relationships that our Levulan sales team have with dermatologists who treat common pre-cancerous skin conditions," Jesper Jensen, head - biologics and dermatology - Sun Pharma, said.
Phoenix Mills pact
Phoenix Mills has entered into a non-binding pact with Canada Pension Plan Investment Board to sell up to a 49 per cent stake in its wholly owned subsidiary Island Star Mall Developers (ISML).
ISML owns and operates retail mall Phoenix Marketcity in Bangalore.
ISML recorded revenues of Rs 164.30 crore and a net profit of Rs 37.10 crore in the last fiscal. The funds raised by ISML will be used to develop business and for growth purposes.
