Alkem Laboratories Acquires Dronabinol-Related Assets from AbbVie to Expand API Portfolio

On December 31, 2019, VCBeat (WeChat ID: vcbeat) learned that Alkem Laboratories would acquire assets related to the active pharmaceutical ingredient Dronabinol from AbbVie for a cash consideration of $10 million (approximately ₹710 million at the current exchange rate).

Mumbai-based Alkem Laboratories stated in a filing to the stock exchange that the acquisition would help the company commercialize assets related to Dronabinol. These assets include drug-related trademarks, patents, inventory, as well as technology and manufacturing instructions. The acquisition will benefit Alkem Laboratories in selling both branded and generic drugs in the United States.

Alkem Laboratories operates 21 manufacturing facilities across India, the United States, Australia, and the United Kingdom for the production and sale of generic drugs, formulations, and active pharmaceutical ingredients (APIs). Founded in 1973, the pharmaceutical company was listed on the Indian stock exchanges in 2015. Over the past 12 years, Alkem Laboratories has consistently ranked among the top ten pharmaceutical companies in India.

Alkem Laboratories possesses world-class capabilities in the research, development, and manufacturing of active pharmaceutical ingredients (APIs), with process technologies defined in compliance with regulatory standards. The acquisition of AbbVie’s API production line represents the latest instance of an Indian company purchasing API products. Through this move, Alkem Laboratories aims to expand its product portfolio and refine its related product lines, closely integrating API formulation R&D with manufacturing. The company will leverage contract research and develop manufacturing capabilities and services compliant with international cGMP standards, thereby further enhancing its global competitiveness in the API sector.

Other Indian pharmaceutical companies also have plans to acquire active pharmaceutical ingredient (API) production lines to expand their market share. For example, in April 2019, Ipca Laboratories, an integrated pharmaceutical company backed by the investment firm ChrysCapital, announced its intention to acquire the biopharmaceutical manufacturer Ramdev Chemical. Ultimately, Ipca Laboratories completed the acquisition for ₹108.5 crore (approximately $15.5 million), aiming to strengthen its API production capabilities. Similarly, SMS Lifesciences announced in February 2018 that it would acquire the API manufacturer Mahi Drugs.

AbbVie is a research-based global biopharmaceutical company dedicated to developing innovative, advanced therapies for some of the world’s most complex and critical conditions. Originally a subsidiary of Abbott, AbbVie was spun off from Abbott in 2013. In early 2019, it acquired Allergan, the manufacturer of Botox, for approximately $64 billion. The company’s key therapeutic areas include immunology, oncology, neuroscience, virology, and general medicine. As of 2013, AbbVie employed approximately 21,000 people worldwide and marketed its pharmaceutical products in more than 170 countries and regions.

(Compiled by Wang Jingna)