Shasun Chemicals & Drugs has announced that it has entered into an exclusive agreement with New-Jersey- based Alpharma Inc. (Alpharma) for marketing its select generic formulations in US and Europe. Under this agreement the Shasun Chemicals will develop and manufacture 10 generic formulations in specific dosage forms and strengths for exclusive distribution and marketing by Alpharma in the US and Europe. These 10 oral formulations fall under specialty, chronic therapeutic segments such as cardio-vascular (CVS) and central nervous system (CNS) categories. The current brand market size of these 10 products in the US and Europe aggregates to around $20 billion.Shasun Chemicals will commence supply of these products in support of Alpharma's regulatory and commercial needs from 2007 based on Alpharma's regulatory Filings and approvals. Alpharma would provide development funding to the company for the products based on milestones while the net profits arising from marketing would be shared between both the partners.Shasun Chemicals and Alpharma believe that the combination of their respective manufacturing and marketing competencies would result in a leading position when the products become generic.Besides the 10 products to be taken up for development over the next three years under the new arrangement, there is opportunity to add further products progressively in the subsequent years.Elaborating on the agreement, N Govindarajan, chief executive officer, of Shasun Chemicals said, "This alliance further diversifies and reinforces our regulated market growth strategy from currently focussed only on APIs to a forward integrated model of extending into finished products also.""We are happy that a market leader like Alpharma also has chosen Shasun to develop manufacture and supply a whole range of products from varied product groups in addition to Glenmark, USA. Shasun is confident of building a strong revenue model from the regulated markets starting from 2006 in the finished dosages space, where Shasun can retain its Stand of collaborating and not competing," N Govindarajan added.
