Hikma Pharmaceuticals PLC (LON:HIK) has signed an exclusive licence agreement with Glenmark Pharmaceuticals to commercialise Ryaltris in the US.
Under the deal, Glenmark will develop the treatment, which is a nasal spray for the treatment of seasonal allergic rhinitis, and submit it for approval to the Food and Drug Administration.
Hikma will then commercialise it once it receives the green light from the authorities.
The FTSE 100-listed firm will give Glenmark an upfront payment, regulatory approval and commercial milestone payments as well as royalties.
No coronavirus disruption
In a separate announcement, the pharma giant set out guidance for 2020 alongside results for the year to 31 December.
The firm added it is currently not experiencing any disruption from the coronavirus outbreak as it does not have “extensive” operations in China.
Revenues for the injectables and branded divisions are expected to grow in the mid-single digits, while generics will deliver sales between US$700mln and US$750mln.
The figures assume the launch of asthma treatment Advair Diskus in the second half of the year, estimated to generate sales of US$20-40mln.
In 2019, profit before tax soared 40% to US$491mln thanks to "better-managed inventory expenses" driving operating profit in the generics division, which accounted for a third of total revenue, up 278%.
The injectables division, half of total sales, delivered a 5% increase in operating profits, while the branded division, a quarter of total revenue, dipped 5%.
Group revenue was up 7% to US$2.2bn. Sales in the injectables, generics and branded divisions rose 5%, 4% and 7% respectively to US$890mln, US$719mln and US$583mln respectively.
During the year, Hikma launched 108 new products and received 169 approvals.
The total dividend was raised by 14% to US$44 cents per share.
Shares advanced 4% to 1,900.89p on Thursday morning.