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Orchid Pharma acquires US company Karalex

11 Jun 2010 Evaluate

Drug-maker Orchid Chemicals and Pharmaceuticals Ltd is set to redefine its growth path, after the sale of its injectibles business to Hospira last year. Now Orchid has acquired the USbased generics marketing company, Karalex Pharma, for an undisclosed sum.

 

The acquisition will give Orchid a front-end in the US, paving the way to sell its own products, without having to partner with multinationals and share revenues. Indicating at more inorganic deals, the company would be 'playing on the front foot'.

 

Orchid will launch two products (oral cephalosporins and non-antibiotics) this year, through this company, and expects to add $20 million to its revenues this year and about $100 million in the next three years.

 

The products Orchid looks to sell are in therapeutic areas such as the central nervous system, cardio-vascular system, anti-diabetic and antiinflammatory sectors. Karalex had clocked revenues of $10 million up to December 2009, said a company official.

 

Orchid recently completed its $400-million transaction with Hospira, where it had sold its injectibles business worth $90 million to the company. Orchid is left with business worth $300 million, he said, about 80 per cent of its business.

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