Panacea inks drug development pact with US firm
New Delhi: Drug firm Panacea Biotec today entered into a strategic alliance with Osmotica Pharmaceutical to develop and market products in various global markets, including the US.
Under the collaboration, Panacea will lead product identification, research, development and manufacturing while US-based Osmotica will be responsible for product registration, legal matters, sales and distribution.
"The collaboration is based on a 50:50 risk, investment and profit sharing by both companies and starts with a portfolio of 18 products across a broad range of therapeutic areas," Panacea Biotec Joint Manging Director Rajesh Jain told reporters here.
The portfolio of 18 products, which could be further expanded by a joint steering committee with representatives from both the firms, has the potential of garnering USD 20-25 billion for the companies, he added.
Regulatory submission for the 18 products would commence during the first quarter of 2013 and end by December 2016, Jain said.
The products that fall under the collaboration pact, include liposomes, modified release oral dosage forms and depot injections, Jain added.
According to the agreement, Panacea would receive initial research fee from Osmotica. Moving ahead, the company would also receive milestone payments.
"For each new product added to the collaboration and for each new market thereof, Panacea shall receive a fixed research fee besides receiving 50 per cent share of development costs," Jain said.
Post commercialisation of the products in the US and other markets as may be added from time to time, both Panacea and Osmotica shall share the profits equally, he added.
"We believe this opportunity affords patients and our shareholders, employees and other stockholder`s significant value," Osmotica Pharmaceuticals CEO Forrest Waldon said.
Panacea Biotec scrip was trading at Rs 107.25 on the BSE, up 19.97 per cent from its previous close.