Strides Arcolab has withdrawn its license and supply agreement with the US drug company KV Pharmaceutical Co. The decision was taken last evening after certain negative developments that were observed in KV Pharma.

It was in mid-2005, that the Bangalore-based Strides Arcolab had inked a license agreement with KV Pharmaceutical Company for exclusive marketing rights in the United States and Canada for 10 new generic drugs.

Further, the deal also included milestone payments payable to Strides by KV Pharma upon submission of application to the US FDA. The milestone payments came through for the Bangalore-based pharma major.

"Between 2005 and 2009, there were 14 products to be marketed under our pact with KV Pharma, of which four were in various stages of filing for approval. Going by the promising prospects in the market, Strides will now scout for potential marketing partners to continue to its presence in the region," Ravi Seth, CEO, International Operations, Strides Arcolab told Pharmabiz.

According to the statement provided to the stock exchange, under the agreement, Strides had agreed to develop certain products to be exclusively licensed to KV Pharma and also make and supply products to KV for sales in certain territories. However, developments such as recall of products and class actions by shareholders prompted Strides to terminate the agreement.

Strides which was incepted in 1990, is now an integrated global player with a strong product pipeline. It pursued a partnership model for regulated markets only for a quick take off and de-risking strategy. Its joint ventures in major markets are Akorn Strides in US, Abdi Strides (Turkey), Strides Polska (Poland). It holds a 55.46 per cent majority stake in Ascent Pharmahealth Limited (APH), an ASX listed company.

The company also collaborates closely with Global Drug Agencies and US PEPFAR and the UNICEF to supply a range of affordable generic pharmaceutical products for treatment of HIV, TB and Malaria. It has manufacturing facilities at Bangalore, Milan, Warsaw, Singapore and Lagos. The pharmaceutical formulations are in various dosage forms which include sterile injectables with dedicated production units for Penicillin and Penams, Cepahlosporins, Oncolytics and lyophilized injectable products. The formulations are in oral dosage forms, including capsules & tablets and Softgel capsules.