Updated on 8 April 2013
In this collaboration, Panacea Biotec would take the lead in R&D, registration and commercial supplies of products while Kremers Urban would be leading marketing, sales and distribution. The business collaboration is based on long-term profit sharing by both companies. So far, under the partnership, one product has been launched, one more ANDA has been filed and additional nine ANDAs will be filed in the next 12 months.
Osmotica Pharmaceuticals is a drug delivery specialized company and brings to the collaboration an immense expertise on the regulatory and commercialization aspects of complex drug delivery based generics. Panacea Biotec entered into a strategic alliance for the R&D and commercialization of drug delivery based, high barrier to entry generic and branded pharmaceutical products in the US and key strategic markets across the globe with Osmotica. The collaboration is designed to build upon each company's highly complementary strengths and quality assets.
Panacea Biotec would lead product identification, research, development and manufacturing while Osmotica would lead product registration, legal matters, marketing, sales and distribution.
The collaboration products are expected to be sold under an Osmotica and Panacea Biotec label. This collaboration is based on a 50:50 risk, investment and profit sharing by both companies and starts with a portfolio of 18 products across a broad range of therapeutic categories, with a provision to add new products by the Joint Steering Committee represented by both Osmotica and Panacea Biotec.
Dr Jain informs that Panacea Biotec has received a research fee from Osmotica on signing and milestone payments over the past months. Moving forward, Panacea Biotec will receive agreed amounts of milestone payments representative of 50 percent share of development costs from Osmotica on achievement of development milestones. For every new product added to the collaboration and for each new market thereof, Panacea Biotec shall receive a fixed license fee besides receiving the 50 percent development costs. Post-commercialization of the products in US and other markets as may be added from time to time, both Panacea Biotec and Osmotica shall share the profits equally.