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Pharma company Strides Arcolab on Friday said it has terminated the license and supply agreement with US-based KV Pharmaceutical following the recent developments, including recall of products and regulatory actions, in the latter's firm.
Due to the developments at KV, like recall of their products, regulatory actions, filing of a series of class actions by shareholders the company has terminated the 'License and Supply Agreement', Strides Arcolab said in a filing to the Bombay Stock Exchange.
On March 2, KV had entered into a consent with the US Food and Drug Administration, as per which the firm agreed not to market products it manufactures until it has satisfied certain requirements that comply with the drug administrator's good manufacturing practices regulations.
KV has also agreed that it would not distribute certain products that are found not conforming with FDA's abbreviated New Drug Application or New Drug Application processes.
In 2005, Strides had signed 'License and Supply Agreement' with KV Pharmaceutical, pursuant to which the firm had agreed to develop certain products to be exclusively licensed to KV and also manufacture and supply such products for sale in certain territories.
Shares of Strides Arcolab were trading at Rs 70.60, up 7.62 per cent on the BSE.