Orchid in a new licensing and distribution alliance with Actavis to market cephalosporin formulations in Europe

Orchid Chemicals & Pharmaceuticals Ltd on February 01, 2007 has announced that it has entered into a licensing and distribution agreement with the international generic pharmaceuticals Company Actavis for marketing 9 of the Company's cephalosporin generic formulations in Europe, comprising all the EU (European Union) and CEE (Central & Eastern Europe) countries, numbering 37 in total.

Under this agreement, the Company will develop and manufacture 9 cephalosporin formulations in specific dosage forms and strengths for licensing to and marketing by Actavis in Europe. Actavis would obtain its marketing authorization based on the Company's dossiers which will be provided on a non-exclusive basis to Actavis. Actavis will source all of these product requirements from the Company exclusively. The products will be manufactured at the Company's state-of-the-art sterile and oral API and dosage form facilities, which are approved by the US FDA and UK MHRA. Actavis would pay certain dossier license fees to the Company based on milestones and share revenues arising from marketing of the products in the territory with the Company.

These 9 cephalosporin formulations licensed to Actavis under the agreement comprise both sterile and oral products. The Company has already filed 10 dossiers with EU regulatory authorities which include some of the products under the agreement. The Company will complete the balance filings required under this agreement over the next few months. With the facility approvals by the EU regulatory agencies on hand, the Company would supply the products upon receipt of marketing authorisations by Actavis for marketing in the vast European geography.

The Company and Actavis believe that the combination of their respective development, manufacturing and regulatory, marketing competencies would result in a leading position for all the products in both hospital and retail sales in Europe. Besides the 9 cephalosporin products to be taken up under this arrangement, there is opportunity to add further cephalosporin products progressively.

A global leader in cephalosporin antibiotics, the Company has already a significant presence in the US cephalosporin generic markets in alliance with reputed distribution partners. Applicable Company's facilities are US FDA and UK MHRA approved. Actavis, a top ranking global generics major has a formidable presence in US and Europe with industry-leading capabilities in all facets of pharmaceutical operations.

"We have a successful alliance with Actavis, for development, manufacture and distribution of 10 non-cephalosporin generic products in the US. We greatly value Actavis’ decision to team up with Orchid for cephalosporin generic products in Europe. Given the vastness and heterogeneity of the European geography, the pan-European presence of Actavis and Orchid’s comprehensive product range, we are confident of achieving robust additions to our business from the European cephalosporin genetic foray starting from 2007-08", said Mr. K Raghavendra Rao, Managing Director, of the Company.

Source : Equity Bulls

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