MUMBAI: Close on the heels of acquiring 14% stake in the UK-based Lipoxen plc, a biopharmaceutical company specialising in development of vaccines and oncology drugs, vaccine major Serum Institute of India Ltd (SIIL) has signed an agreement with the US-based Akorn Inc to receive one million shares.
SIIL will also be signing a few more tie-ups in the US market soon. The US-based Akorn Inc reached an agreement to issue one million shares to Serum Institute at $3.56 per share. The final issuance of shares is subject to completion of documentation and customary closing conditions.
Akorn’s board of directors also intends to nominate Dr Subash Kapre, executive director, SIIL, for inclusion in the company’s board, said sources.
Last month, Lipoxen raised £2.6 million in new funds from the Serum Institute through a subscription agreement and associated warrant agreement. Serum Institute officials were unavailable for comment.
As a speciality pharmaceutical company, Akorn is focused on three major business segments - ophthalmology, hospitals, and contract manufacturing. It has a revenue base of over $50 million.
In October 2004, Akorn and Serum entered into an exclusive drug development and distribution agreement for oncology and other injectable products. Akorn has manufacturing facilities located in Decatur, Illinois and Somerset, New Jersey and markets and distributes an extensive line of hospital and ophthalmic pharmaceuticals.
Cyrus S Poonawalla, chairman, SIIL, told DNA Money, “Even though it is a small investment, we hope the deal will boost our presence in the US. Comparatively, Akorn may be a small player, but we prefer these kind of deals as the company has a good range of hospital as well as oncology drugs, which are similar to our portfolio.”
“Apart from the deal with Akorn, we will sign more tie-ups in the US in the coming future,” he added. The products under tie-up with Akorn will be marketed from next year onwards.
Akorn has established partnerships with leading Indian pharma companies like Cipla, Natco Pharma, FDC and Strides Acrolab in the last two years. It had set up a JV, called Akorn-Strides LLC, with Strides in September 2004. Strides has been developing abbreviated new drug application (ANDA) products, while Akorn has been filing the regulatory submissions on behalf of the joint venture.
In April, Akorn signed an API supply and margin sharing agreement with Hyderabad-based Natco Pharma Ltd, to commercialise ANDA injectable drug products. In March, 2006, Akorn and Cipla signed an exclusive drug manufacturing and supply agreement for an oral anti-infective ANDA product. Under the terms of the 10-year agreement, Cipla will manufacture and supply the drug using Akorn’s formulation, and Akorn will be responsible for the ANDA regulatory submission and clinical development, and for specialised manufacturing equipment.
