Dr. Reddy’s sells neurology products to Upsher-Smith for as much as $110M

Dr. Reddy’s Laboratories Ltd. announced Friday that Upsher-Smith Laboratories has agreed to purchase two of its neurology-branded assets for up to $110 million or more.

The two products, Zembrace Symtouch (a sumatriptan injection) and Tosymra (a sumatriptan nasal spray), were commercialized through Dr. Reddy’s wholly-owned subsidiary, Promius Pharma LLC.

“Tosymra and Zembrace were designed and developed with the goal of addressing unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies. We are excited to partner with Upsher-Smith, which has established a strong presence in neurology,” Anil Namboodiripad, senior vice president, proprietary products, and head, Promius Pharma, said.

Under the agreement, Dr. Reddy’s, which has facilities in Princeton, will receive $70 million as upfront consideration and $40.5 million in near term milestones and additional financial considerations. Dr. Reddy’s will also receive sales-based royalties on a quarterly basis.

“This is a testament to our strong R&D capabilities, and delivering solutions to unmet needs of patients. In a short time, we created a well-recognized migraine specialty business in the U.S. and we look forward to our partnership with Upsher-Smith,” G.V. Prasad, co-chairman and CEO, Dr. Reddy’s, said.