Dr. Reddy’s Laboratories said it will sell its three specialty products to a U.S. firm as the drugmaker to set up its central point on profitability.
The Hyderabad-based drugmaker, in an exchange filing today, said that it couldn’t scale up the business of Sernivo spray, Promiseb cream and Trianex ointment—which it was marketing in the U.S.—and will sell them through a subsidiary, Promius Pharma LLC, for which Encore Dermatology will make “upfront payments” and “future milestone payments”. Details about the payments and milestones weren’t disclosed
The management of the company had highlighted in an earnings call for the third quarter that it sought to reduce losses at its proprietary division.
GV Prasad, co-chairman and chief executive officer of Dr. Reddy’s Laboratories, was quoted as saying in the filing, “the sale is in line with the company’s renewed strategy to enable achievement of self-sustainability and profitable growth for each of their businesses.”