Orchid Chemicals & Pharmaceuticals Ltd has entered into an exclusive distribution alliance with Mayne Pharma, the injectable specialty pharmaceuticals division of the Mayne Group Ltd (Mayne) for marketing company's selected life-saving injectable antibiotic formulations in identified regulated markets. This alliance will cover the US, Canada, European and Australasian geographies.

Under this agreement, the company will exclusively develop and manufacture a range of injectable antibiotic formulations in specific dosage forms and strengths for distribution and marketing by Mayne. These products have a current market size of over USD 1 billion in the selected markets.

According to a company release, Orchid has a strong manufacturing capability and leadership position in cephalosporin and betalactum antibiotic products, especially the steriles and is now poised to diversify its range further with additional niche products. The company would commence supply of these products as soon as the development is completed and in the case of patented products, once they go off-patent. Mayne provides development funding to the company for the products upon execution of the agreement and further milestones. Net profits arising from marketing would be shared between the partners.

The company has recently made a significant entry into the US market with the generic version of the blockbuster product, Ceftriaxone, upon its patent expiry. The company will be expanding its regulated market presence with progressive launch of additional sterile and oral products based on US FDA approvals, the release added.

"This alliance provides a perfect foil to our established position as a global manufacturer of injectable antibiotic formulations. The entry into the new product segments would drive us into a futuristic growth area in injectable antibiotics and ensure a continued niche positioning in technology and marketing. In addition to creating a win-win relationship, with scope to add more products going forward, we are confident of a robust incremental business model with strong revenue drivers emerging from such niche opportunities," said K Raghavendra Rao, Managing Director, Orchid.