Bionpharma buys 25 products from specialty drug maker Banner Life Sciences

MUMBAI: Bionpharma, a New Jersey-based pharmaceutical startup founded last year by five former Ranbaxy executives and backed by strategic and financial investors, has acquired a portfolio of approximately 25 products from specialty drug maker Banner Life Sciences.

The combined revenue of the acquired products is estimated at more than $70 million and forms a mix of high-potency steroidal, antiviral, neurology, over-the-counter pain management and anti-allergy medicines. Banner sold the products to focus on developing specialised drugs, experts said. Of the products acquired by Bionpharma, 18 are marketed as generic drugs, four are specialised products filed as NDAs (new drug applications) with the US Food and Drug Administration, two are in the process of regulatory reviews and two are undergoing development.

Some of the drugs that will be part of Bionpharma's portfolio include cetirizine and ibuprofen sold over the counter in the US but are on NDAs as they are sold under a differentiated formulation. One of the specialised drugs acquired is a soft gelatin form of loperamide used to treat diarrhea. Some of the products are distributed by partners such as Impax and Mylan.

CEO Venkat Krishnan, who led Ranbaxy's US operations before leaving the company last October, confirmed closure of the deal but did not divulge the value of the transaction.

Bionpharma has launched four products in the US through in-licensing deals a form of joint development with other companies. It has partnerships with global pharmaceutical companies, including a few from India such as Natco and Unimark Remedies. Krishnan told ET his company is seeking more opportunities to scale up, adding that the right mix of products and a clear business strategy with a secure and compliant supply chain can help accelerate growth. He indicated that Bionpharma may consider establishing a manufacturing base in the future.

The deal with Banner is expected to help jump start Bionpharma in the crowded generics space. Over the past 12 months, the company has seen a flurry of investments. New York-based global investment firm Signet Healthcare owns more than 40 per cent of the company while one of Canada's largest drug makers, Pharmascience, holds another chunk of equity. Krishnan, Gaurav Mehrotra, Bill Winter, Lavesh Samtani and Phanindranath Punji all of whom quit Ranbaxy in October last year form the third largest group of shareholders.

Sun Pharmaceutical Industries completed its acquisition of Ranbaxy in March.