Strides Arcolab Limited has signed a memorandum of understanding with the US-based Akorn, Inc to market products to the US hospital market.
The Bangalore based company is in the process of signing up a definitive agreement within ninety days to receive its registered name for the joint venture company (JVC), a company release said.
Under the definitive agreement, Akorn will provide the funding expenses of a $5 million capital to Strides for developing the jointly agreed upon ANDA products for the JVC. Under the terms of the MoU, the JVC will pay back to Akorn $5 million when the JVC is generating revenues and profits per an agreed schedule to be determined by Strides and Akorn.
The JVC will outsource from Strides an exclusive product pipeline and ANDA products in finished dosage forms including liquid injectables, lyophilized, powder fill parenterals and soft gel capsules and tablets.
Currently, Strides has a total of 12 manufacturing plants worldwide including an FDA approved plant in Somerset, New Jersey. The company’s four plants in India, including a new facility for cephalosporins coming at its Bilekahhi campus in Bangalore which is expected to be commercialized by the fourth quarter of 2004, will address manufacturing needs of Akorn.