Dr. Reddy's Laboratories announced that the company has acquired Trigenesis Therapeutics, Inc., a US based privately owned dermatology company. This acquisition provides Dr. Reddy's with access to certain products and proprietary drug delivery technology platforms for developing a pipeline of differentiated drugs in the dermatology segment. The total investment outlay is US$ 11 million.
Dr. Reddy's will make additional contractual payments during the course of development of the products and technology platforms and royalties on sales to Skye Pharma plc and SilvaFoam LLC pursuant to existing Trigenesis agreements.
Commenting on the acquisition, GV Prasad, CEO of Dr. Reddy's Laboratories, said, "We are excited about this acquisition and see it as an important element of our overall corporate strategy in facilitating our transition into a specialty pharmaceutical company focused on the US market. This deal provides us an exciting opportunity to apply various proprietary drug delivery technologies in creating a pipeline of differentiated drugs that will broaden the range of available treatment options and establish Dr. Reddy's in the prescription dermatology segment."
The prescription dermatology product market in the United States was estimated to be US$6 billion in 2002, with the global market in 2003 worth US$8 billion. The global total includes US$2.5 billion for products to treat dermatitis and psoriasis, and the remainder being divided amongst other miscellaneous minor indications.
In the US, various dermatological diseases affect about 50 million Americans and acne, dermatitis, fungal, and psoriasis represent the largest segments. Sales of dermatological products are estimated to grow at 5 per cent to 10 per cent per annum. These products, typically in topical and oral form, are developed and manufactured by a fragmented marketplace of companies and prescribed (in the US) by a relatively small base of under 10,000 dermatologists.
Trigenesis is a privately owned US company focused on the dermatology area. It is a drug development company that has acquired worldwide rights and limited territorial licenses to certain products and worldwide licenses to certain proprietary drug delivery technologies for application in the treatment of dermatological diseases and disorders.
SkyePharma, based in London, uses its leading drug delivery technology to develop easier-to-use and more effective formulations of drugs. The majority of challenges faced in the formulation and delivery of drugs can be addressed by one of the Company's proprietary technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilization capabilities.