Zydus Cadila to Enter U.S. Generics Market Under Agreement With Mallinckrodt

Indian drugmaker Zydus Cadila has entered into an agreement with a unit of Tyco Healthcare that will enable it to tap into the U.S. generics market.

Under terms of the agreement, Zydus Cadila's U.S. subsidiary, Zydus Pharmaceuticals, will develop and register the generic products and Zydus Cadila will manufacture the products at an FDA-approved plant in Ahmedabad, India. Tyco subsidiary Mallinckrodt Pharmaceuticals Generics will market and sell the products under a joint Mallinckrodt-Zypharma label.

The agreement is scheduled to last for five years, but can be extended upon consent from both companies, Zydus Cadila said.

"We are pleased to join hands with a company of Mallinckrodt's standing in the U.S. industry as we make our foray in the U.S. generics market," Zydus Cadila Chairman Pankaj Patel said in a statement. "Leveraging strengths of both companies are bound to create a significant impact on the market and create competitive advantage for both companies."

The agreement will allow Zydus Cadila to speed its entry into the $20 billion U.S. generics market without the time-consuming process of establishing its own U.S. marketing network, the company said. The alliance has already received approvals from the FDA to market high-blood pressure treatment atenolol and antibiotic clindamycin.