IDT generic drug products to be commercialised in the US

US-based company ANI Pharmaceuticals has agreed to market and distribute up to 18 generic pharmaceutical products which have recently been acquired by IDT Australia (ASX:IDT).

In a major commercial milestone for IDT, ANI will make an upfront payment of US$1 million for exclusive rights to commercialise its products in the US market. They are to be sold to large pharmacy chains, such as Walmart, CVS, RiteAid and Walgreens, with other potential customers including the primary retail source programs at McKesson, AmerisourceBergen and Cardinal Health.

“This partnership represents a substantial opportunity for ANI to further expand our marketed generic product portfolio,” said ANI Pharmaceuticals President and CEO Arthur S Przybyl. “We are very enthusiastic about this relationship, as we see IDT as a high-quality global generic supplier with similar ambitions and culture.”

Launch milestones of up to a further US$1.25 million will be payable as the products come back on market. ANI and IDT will share in the net profits from commercialisation.

“ANI is an ideal US partner for IDT as it has a proven track record — having already successfully commercialised its own generic drugs, is nimble and shares IDT’s zest for growth,” said IDT Managing Director and CEO Dr Paul MacLeman. “Culturally the two companies are a good fit and the terms of the agreement are fair to both parties. We are very much looking forward to working with the ANI team to grow sales and create value.”

IDT and ANI are aiming at launching the first of IDT’s portfolio of fully genericised pharmaceuticals during 2016. The timelines for first product relaunches are subject to further input from ANI.

IDT (ASX:IDT) shares were trading 14.55% higher at $0.315 as of around 12.30 pm on Wednesday.