Alchemia Limited (ASX:ACL) has entered into a binding term sheet to sell its intellectual property rights to generic anti-coagulant drug fondaparinux sodium to Dr. Reddy’s Laboratories (NYSE:RDY) for US$17.5 million (A$24.9 million).
The company has also received a US$1.15 million payment for its share of net profit from U.S. only sales of fondaparinux for the quarter ended 30th June 2015.
In 2007, Alchemia granted Dr. Reddy’s – a US$10.14 billion market cap - non-exclusive rights to the manufacture of fondaparinux sodium in API (Active Pharmaceutical Ingredient) form, and exclusive rights to market fondaparinux in North America.
Alchemia was entitled to receive 50% of the net profit generated from sales of fondaparinux in North America.
In 2012, Dr. Reddy’s exclusive rights to market fondaparinux in all territories other than North America.
The sale agreement is conditional on shareholder approval that will be sought at its annual general meeting in November this year.
Should the transaction be approved and completed, the company will not be entitled to receive any further profit share revenues from fondaparinux sales.
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