Drug maker Lupin on Monday said it has settled all patent litigation over Solodyn tablets with Medicis Pharmaceutical Corp and signed a pact with the US-based firm for development of multiple therapeutic compounds.
The pact would entail the Indian company receiving up to $38 million (over Rs 165 crore).
After the settlement agreement for the anti-biotic used for treating acne, Lupin is entitled to sell its generic versions of Solodyn in 45 mg, 90 mg, and 135 mg strengths under a license from Medicis commencing November 2011, or earlier under certain conditions, a company statement said.
The settlement also entitles Lupin to sell its generic versions of Solodyn in 65 mg and 115 mg strengths under a license from Medicis effective in February 2018, it added.
Further, Lupin can sell its generic versions of Solodyn in 55 mg, 80 mg and 105 mg strengths under a license from Medicis effective in February 2019, or earlier depending on certain conditions.
In another development, the company said it has also signed a research and development agreement with Medicis Pharmaceutical Corp.
Under the terms of the agreement, Lupin will receive a $20 million (nearly Rs 90 crore)
upfront payment from Medicis, it said.
The company will be primarily responsible for formulating certain novel therapeutic products for Medicis, utilising several of Lupin's formulation technologies, it added.
On the other hand, Medicis will have global exclusive rights (excluding India) for the products developed under the agreement, it said.
"Lupin will be eligible for future research, development, regulatory and other milestones (payments) of up to $38 million, as well as a single digit royalty on sales by Medicis," it said.
Milestone payments are payments made by licensee against successful completion of pre-defined development milestones.
Medicis will be responsible for further development and commercialisation of the licensed products, it added.
Commenting on the development Lupin Ltd Group president and executive director Nilesh Gupta said, "We are very pleased to enter into this important collaboration with Medicis.
"This further substantiates our drug delivery capabilities in building and developing proprietary products."
Shares of Lupin on Monday closed at Rs 457.25 on the Bombay Stock Exchange, up 1.14 per cent from its previous close.
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Drug maker Lupin on Monday said it has settled all patent litigation over Solodyn tablets with Medicis Pharmaceutical Corp and signed a pact with the US-based firm for development of multiple therapeutic compounds.