India's Orchid in Drug Alliance with Mayne to Develop Generic Drugs

4 October, 2005

India's Orchid Chemicals & Pharmaceuticals Ltd. had reached an alliance with Australia's Mayne Pharma to market injectable antibiotic products in the United States, Canada, Europe and Australasia.

Orchid will develop and manufacture a range of generic drugs whose current sales in key markets are $1 billion, for distribution and marketing by Mayne. Orchid has already received an upfront payment for executing the agreement, which will be reflected in its third quarter results and will be eligible for further milestone payments from Mayne, a spokesman said. The two partners will also share the profits from marketing the generic drugs developed by them.

Mayne Pharma is the injectable drugs division of Australia's Mayne Group. The group plans to split into two separately listed companies by the year-end, one in global injectable drugs and the other in Australian radiology, pathology and pharmacy distribution and consumer products.

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