Strides Arcolab Limited, the Indian Generic Pharmaceutical company, has signed a license agreement with KV Pharmaceutical Company, for exclusive marketing rights in the United States and Canada for 10 new generic drugs. K V Pharma will also make an investment of US$ 11.3 million through redeemable preference share, subject to the approval of shareholders of Strides Arcolab.

The agreement also includes exclusive marketing rights in Europe for two of the products, and provides for future collaboration between the companies beyond the initial 10 products, stated a release from Strides.

Under the agreement, Strides will develop and submit for regulatory approval and manufacture the 10 products, which collectively target product categories with aggregate branded market value of approximately USD 2 billion, according to IMS data.

KV's generic/non-branded division, Ethex Corporation will be responsible for exclusively marketing the products in the territories covered by the agreement. The licensed products are expected to strengthen existing therapeutic areas of Ethex as well as expand the division into new therapeutic categories. Initial products could be ready for submission to the United States Food and Drug Administration as early as KV's current fiscal year.

"Strides' partnership with a leading specialty pharmaceutical company which has the marketing expertise to convert its products into successful commercial initiatives, would allow us to focus on our development and formulation capabilities while accelerating our entry into the US pharmaceutical market place," stated Arun Kumar - Group CEO & managing director, Strides Arcolab.

Marc S. Hermelin, vice chairman and CEO, KV Pharmaceuticals, says, " Ethex focuses on in-house development and external collaborations and acquisitions to strengthen its position in therapeutic categories to bring value added drugs to physicians and patients. We look forward to working closely with Strides as we bring these latest new products to the North American market."

The deal includes milestone payments payable to Strides by KV upon submission of application to the USFDA and when FDA approval is granted.