According to a release issued to the Bombay Stock Exchange, Orchid Chemicals through this agreement will develop and exclusively manufacture these non-cephalosporin formulations for exclusive distribution and marketing by STADA in the US market.
The product is to cover diverse therapeutic segments including cardio-vascular, central nervous system, anti-allergic, gastrointestinal and anti-infective categories.
The release said that the current market size of the product in US aggregates to around $12.5 billion and would commence supply of these products once they go off-patent progressively from 2007 onward based on company's regulatory filings and approvals.
"This alliance, coming close on the heels of our other agreements for distribution of our products in the US and Europe, further diversifies and reinforces our regulated market growth strategy," K Raghavendra Rao, managing director, of the company, said.
"We are happy that we are tying up with a major generics player like STADA to develop, manufacture and supply a whole range of products from varied product groups to its U.S. subsidiary," he added.