J.B. Chemicals & Pharmaceuticals Limited (JBCPL) announced that supply, marketing and distribution of its Ciprofloxacin will be exclusively managed by Lannett Company Inc, USA, via an agreement with its joint venture partner Spectrum Pharmaceuticals Inc, USA. The US FDA has already accepted the Company’s ANDA filing for Ciprofloxacin and approval is expected by year-end 2003. The Company expects to generate revenues from the US sales of Ciprofloxacin in 2004.
Upon approval of the ANDA and expiration of the patent, JBCPL will manufacture and supply Ciprofloxacin for NeoJB LLC. Lannett will receive Ciprofloxacin through NeoJB LLC, which is an 80:20 joint venture between Spectrum and J. B. Life Science Overseas Ltd., a subsidiary of JBCPL. With estimated worldwide sales in excess US $ 1 billion, Ciprofloxacin is widely used to treat bacterial infections.
Lannett is publicly traded corporation, listed on the American Stock Exchange. It has a long and successful history in the generic industry and has used its strengths to rapidly grow its sales and profits from generic drugs.
JBCPL will benefit from the pact immensely, as Lannett has one of the most penetrative distribution networks across USA, to ensure that the products reach the wholesale/ retail outlets in the shortest possible time. JBCPL expects Lannett’s strong and growing base of wholesale distributors, mail order distributors, warehousing and retail chains, to maximize opportunities for the Company’s Ciprofloxacin sales in USA.
Going forward, this will enable JBCPL to encash the generic opportunities through development, manufacture and supply of select basket of generic formulations for USA. The tie-up will also help JBCPL establish and consolidate its presence in the USA, thereby creating a sustainable competitive advantage in the biggest pharmaceutical market of the world. Lannet’s stock price is currently quoting at about US$ 18 on the XX Exchange.