The Chennai-based pharma major, Orchid Chemicals & Pharmaceuticals Ltd (Orchid), has entered into an exclusive agreement with STADA Pharmaceuticals, Inc., the US subsidiary of STADA Arzneimittel AG, for the development and supply of six prescription generic drug products to STADA for the US market. Through this agreement the Company will develop and exclusively manufacture these non-cephalosporin formulations for exclusive distribution and marketing by STADA in the US market.

According to the company release, these products cover diverse therapeutic segments including cardio-vascular, central nervous system, anti-allergic, gastrointestinal and anti-infective categories. The current US brand market size of the products aggregates to around USD 12.5 billion. The Company would commence supply of these products once they go off-patent progressively from 2007 onward based on Company's regulatory filings and approvals.

Orchid is establishing new US FDA compliant infrastructure to develop and manufacture drugs in these non-cephalosporin segments. The bulk actives facility is being set up in Aurangabad and the formulations facility in Irungattukottai near Chennai. Both these facilities are versatile, multi-purpose and modular in nature and will be progressively commissioned during the first half of this year, the release added.

"This alliance, coming close on the heels of our other agreements for distribution of our products in the US and Europe, further diversifies and reinforces our regulated market growth strategy. We are happy that we are tying up with a major generics player like STADA to develop, manufacture and supply a whole range of products from varied product groups to its US subsidiary," said K Raghavendra Rao, managing director of the Company.