The Hindu : Business : Orchid signs pact with Par Pharma

Online edition of India's National Newspaper
Thursday, May 27, 2004

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Business

Orchid signs pact with Par Pharma

By Our Staff Correspondent

CHENNAI, MAY 26. The Chennai-based Orchid Chemicals & Pharmaceuticals Ltd has entered into an agreement with Par Pharmaceuticals, the principal subsidiary of Pharmaceutical Resources, Inc. for marketing of its oral cephalosporin formulations in the U.S. generics market.

The agreement covers seven key oral products in multiple dosage forms and dosage strengths. Two of the seven products are premium, high-value products, which are to go off patent.

Addressing a press conference here today, K. Raghavendra Rao, Orchid's Managing Director, said it was an exclusive supply and distribution arrangement for an agreed period of ten years. Under the agreement Par would source the products exclusively from Orchid for distribution in the U.S. The Abbreviated New Drug Application (ANDAs) would be owned by Orchid. Par would also provide regulatory support as required.

Orchid would manufacture the generic cephalosporin formulation products from its state-of-the-art Irungattukottai plant near Chennai.

The products would be supplied exclusively by Orchid to Par under a profit share agreement. In addition, Par would be paying Orchid towards its R&D and ANDA costs over a period until such costs are reimbursed in respect of each product.

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