Dr. Reddy's acquires US company for $11 M

Friday, 07 May 2004, 19:30 IST
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NEW YORK: Dr. Reddy's Laboratories Thursday said it had acquired privately-owned US company Trigenesis Therapeutics Inc. for $11 million to enter the $6-billion dermatology market in America. The deal provides Dr. Reddy's with access to products and proprietary drug delivery technology platforms for developing drugs in the dermatology segment, the company said in a statement. "We are excited about this acquisition and see it as an important element of our overall corporate strategy in facilitating our transition into a specialty pharmaceutical company focused on the US market," G.V. Prasad, chief executive of Dr. Reddy's, said. "This acquisition provides Dr. Reddy's with access to certain products and proprietary drug delivery technology platforms for developing a pipeline of differentiated drugs in the dermatology segment." Dr. Reddy's is expected to make additional contractual payments and royalties to two companies -- Skye Pharma of Britain and California-based SilvaFoam -- during the course of product and technology development. In a $20-million deal last month, Nasdaq-listed SkyePharma licensed its dermatology assets to Trigenesis Therapeutics. "We believe the sales potential of the pipeline products could exceed $500 million within the next 10 years," SkyePharma's chief executive Michael Ashton had commented while entering into the deal with Trigenesis.
Source: IANS
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