Alchemia set to receive share of profits from fondaparinux sales

Alchemia Limited (ASX:ACL) is due to start receiving a share of the profits from US sales of its anticoagulant product, generic fondaparinux.

The company's marketing partner in the US, Dr Reddy's Laboratories, has recouped the development costs it incurred from the launch of the product.

Under the collaboration, development marketing agreement, this entitles Alchemia to start taking a slice of profits from sales.

Alchemia announced it anticipates receiving the first of its share of the profits on some sales from the June quarter.

Once data is in regarding fondaparinux sales during the quarter, the companies will finalise the terms of Alchemia's cut.

Alchemia CEO Pete Smith called the occasion “a significant milestone for the company.”

Dr Reddy's has traditionally been quiet about the sales of generic fondaparinux. When Alchemia gave an update on estimated US sales of the product in May, it had to cite figures provided by a Bloomberg report, as its partner does not typically break down individual product sales.

But earlier in February, Alchemia was able to reveal that US sales of the drug had reached $1.4 million per week.

Fondaparinux is the generic version of anticoagulant Atrixa. Alchemia produces it using a patent-protected manufacturing method.

Dr Reddy's first launched the product into the US market in July 2011. In April this year, the company applied for marketing approval to also sell the product in the EU.

Alchemia (ASX:ACL) shares were trading 1.04% higher at $0.485 by around 2:30pm on Tuesday.