Shares of Dr. Reddy's Laboratories rose over 2% in intraday trade on Monday after the drug maker acquired an injectable product portfolio from the U.S.-based Eton Pharmaceuticals, Inc. The pharma major says it has acquired a portfolio of branded and generic injectable products from Eton Pharma for an upfront payment of approximately $5 million in cash, plus contingent payments of up to $45 million.
Boosted by acquisition news, shares of Dr. Reddy's Laboratories gained as much as 2.12% to hit an intraday high of ₹4,400 on the Bombay Stock Exchange (BSE). At the time of reporting, the pharma heavyweight was trading 1.2% higher at ₹4,308.75 apiece. The market capitalisation of the company stood at ₹72,565.62 crore. The stock touched its 52-week high of ₹5,613.65 on July 7, 2021, and a 52-week low of ₹3,655 on March 4, 2022. Meanwhile, the BSE benchmark Sensex was trading 637 points higher at 53,365 levels.
Dr. Reddy's exchange filing says the company, along with its subsidiaries, has acquired a portfolio of branded and generic injectable products from Deer Park, Illinois, based Eton Pharmaceuticals, Inc. The acquisition supports its efforts to accelerate and expand affordable medications for patients. Besides, it'll complement the drug maker’s U.S. institutional business, with limited competition injectable products.
"Long before the Covid-19 pandemic, there have been concerns about access to some critical care products for hospitals and health systems. This acquisition provides our North America organisation with a foundational footprint to help address products that are not always readily available for patients," says Marc Kikuchi, chief executive officer, North America Generics, Dr. Reddy's.
"For these and many other reasons, I believe we are well-positioned to integrate the portfolio and grow the business," Kikuchi adds.
The portfolio includes the Biorphen (phenylephrine hydrocholoride) Injection and Rezipres (ephedrine hydrochloride) injection NDAs with nine separate combinations of strengths and presentations. It also includes one first-to-file approved ANDA for Cysteine Hydrochloride for the U.S. One strength each of Biorphen and Rezipres, which are currently commercially available in America. The value of the total addressable market for these products in the U.S. is around 4 million for the calendar year ending in April 2022, according to IQVIA, a pharma and clinical research company.
Earlier this month, the company launched the generic version of Nexavar (sorafenib) tablets in the U.S. market, following the approval by the U.S. Food and Drug Administration (USFDA). Dr. Reddy’s Sorafenib Tablets, USP, are available in 200 mg tablets in bottle count sizes of 120. The company intends to launch 15-17 products in FY23 and 20-25 products in FY24 in the U.S. market, it had disclosed in an investor day call on June 21, 2022.