Dr Reddy's Laboratories shares fell 1.7 percent intraday on June 14 despite company entered into a definitive agreement to sell its neurology branded products.
"We have entered into a definitive asset purchase agreement with Upsher-Smith Laboratories, LLC (Upsher-Smith), pursuant to which we would sell US and select territory rights for Zembrace Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg," the drug maker said in its filing.
The company will commercialise these products through its wholly owned subsidiary, Promius Pharma, LLC, it added.
Under the agreement, Dr Reddy's said it would receive $70 million as upfront consideration, $40.5 million in near term milestones and additional financial considerations including, existing contractual obligation and inventory.
Subsequently, it will receive sales-based royalties on a quarterly basis, the company added.
"Tosymra and Zembrace were designed and developed with the goal of addressing unmet needs of large but discrete segments of patients suffering from episodic migraine who need options other than their current therapies," said Anil Namboodiripad, Senior Vice President, Proprietary Products and Head, Promius Pharma.
The stock was quoting at Rs 2,549.00, down Rs 37.15, or 1.44 percent on the BSE at 10:18 hours IST.
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