Cadila Healthcare on Monday said it has inked a pact to sell rights of its cholesterol lowering product Zypitamag in the US and Canada markets to Medicure lnc for a total consideration of $7 million. Canada-headquartered Medicure had earlier acquired US marketing rights for the product with a profit-sharing arrangement with Cadila.
The company has entered into an asset purchase agreement to sell its right, title and interest in Zypitamag, along with applicable registrations and intangible assets relating to the product for US and Canada markets to drug firm Medicure, Cadila Healthcare said in a regulatory filing.
Under terms of the agreement, Cadila will receive an upfront payment of $5 million and $2 million in deferred payments to be made over the next four years, contingent payments on achievement of sales milestones and royalties on net sales, it added.
"With this acquisition, Medicure retains all profits, with full control of marketing and pricing negotiation for USA and Canada markets," Cadila said.
US Food and Drug Administration (USFDA) had approved Zypitamag in 2017. Medicure had launched the product in the US in the second quarter of 2018 through a license agreement it had entered into with Cadila.
Cadila Healthcare shares on Monday ended 3.35 per cent down at Rs 233.45 apiece on the BSE.
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