IDT Australia weighing acquiring HRT product

IDT Australia (ASX:IDT) has entered an option agreement to potentially acquire a hormone replacement therapy product undergoing the approvals process in the US.

The company has signed an exclusive agreement with Perrigo Company to evaluate the acquisition of a US Abbreviated New Drug Application (ANDA) filing for Perrigo’s Synthetic Conjugated Estrogens (SCE).

Perrigo has contracted IDT to manufacture the finished dose form of SCE as part of the filing. But early last year Perrigo was informed by the FDA that there was a problem with the filing relating to the sourcing of bulk drug quantities, and that the agency is unable to progress the review as a result.

IDT will now assess whether it can solve the bulk drug issue using its manufacturing capabilities. If the due diligence comes back positive, the company will acquire all IP and physical assets relating to the filing.

As part of the proposed final deal, Perrigo will distribute the SCE product in the US on behalf of IDT.

“Acquiring Perrigo’s Synthetic Conjugated Estrogens ANDA sits squarely within IDT’s strategy to maximise the value of our existing assets via the growth of our own specialty generic drug portfolio,” IDT managing director Dr Paul MacLeman commented.

“In the event IDT proceeds with the transaction, Perrigo’s role in marketing the product will maximise its success in the [market] due to Perrigo’s dominance in this sector.”

IDT Australia (ASX:IDT) shares were trading 2.56% higher at $0.40 as of around 1.30 pm on Monday.