Pharma major Wockhardt has bought out its German partner Rhein Biotech GmbH in the 50:50 joint venture, Wockhardt Rhein Biopharm Ltd.
The company produces a recombinant hepatitis-B vaccine, Biovac-B, in India that was produced by the venture.
Even after the buy out, Wockhardt will continue the technical collaboration to produce Biovac-B. Besides, the German company will have limited marketing rights for the vaccine in India, in lieu of the equity sold to Wockhardt.
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Habil Khorakiwala, chairman of Wockhardt, said: "We feel that there was no value-creation from Rhein Biotech anymore. In lieu of purchasing their equity, we have given them marketing access for the vaccine. However, they (Rhein Biotech) will have to purchase the vaccine from us to market it in India."
"Theoretically, Rhein Biotech has an alternative to exercise this option and is not time bound," Khorakiwala added.
Rhein Biotech is the world's third-largest producer of the hepatitis-B vaccine. Analysts said the company's buyout was expected as the government was to soon include anti-hepatitis drugs in its immunisation programme.
Khorakiwala said, "We will continue to manufacture this vaccine at the Aurangabad plant along with setting up of a facility for 100 million paediatric doses of the same vaccine with facilities conforming to US Food and Drug Administration and EMEA standards. This will give us access to the global market to sell the vaccine."
The joint venture, Wockhardt Rhein Biopharm Ltd, was set up in 1996. Rhein Biotech is a subsidiary of Rhein Biotech NV, the world's third-largest producer of the hepatitis-B vaccine.