Microbix, Cadila to mkt biotechnology product/news09012012

Microbix Biosystems Inc, a Canadian biotechnology company commercialising novel technologies, and Cadila Healthcare ( Zydus Cadila) said that they have signed a Letter of Intent (LoI) to market the Thrombolytic drug Urokinase in the North American markets.

The estimated market size for Urokinase use in the US alone is expected to touch $400 million by 2020. The same active pharmaceutical ingredient (API) can be used in new and even larger indications in oncology and ophthalmology, Zydus Cadila said in a statement here.

Over 4 million patients have been treated successfully with Urokinase.

The drug was withdrawn from the market for 3 years from 1999 to 2002 for reasons unrelated to product performance. Urokinase was acquired by Microbix in 2008 which has since stepped up efforts to re-introduce the drug in North America.

The Ontario-based Microbix Biosystems Inc specialises in the development of biological technologies and markets virology and biological products worldwide.

Zydus Pharmaceuticals USA Inc, the Group's subsidiary in the US, is ranked 12th amongst the top generic companies in the US. The company is among the top 3 players in the US market for 9 out of the 10 products marketed.

Our view: Although, it is not clear what kind of financial support Zydus Cadila (read Cadila Healthcare) has extended to Microbix, it seems to be strategic step for cadila Healhcare to expand its presence in the field of biotechnology. We do not expect any material financial implication in next 2-3 years due to this deal.
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