Ahmedabad-based Zydus Cadila and Germany’s Bayer Healthcare have signed an agreement to set up a 50:50 joint venture (JV) company Bayer Zydus Pharma to market pharmaceutical products in India.
Both companies will be equally represented in the board. The new entity will operate in key segments, including women’s healthcare, metabolic disorders, diagnostic imaging, cardiovascular disease, anti-diabetic treatments and oncology, the company said in a statement.
The JV will start operations with Bayer Healthcare’s pharmaceutical division contributing to its existing sales and marketing business in India to the new company. Zydus will contribute women’s healthcare products, diagnostic imaging business and other products.
In addition to Bayer Healthcare’s existing pharmaceutical products portfolio in India the joint venture would also focus on the sales and marketing of future patented pharmaceutical products, said Zydus in a release to the Bombay Stock Exchange. Both Bayer Healthcare and Zydus will supply the joint venture with products sourced from its manufacturing operations at existing locations.
Commenting on the development, Zydus Cadila managing director Pankaj Patel said: “We have always believed in partnering growth, have keenly explored new opportunities and looked at synergies in the market place.”
Through this transaction Bayer Healthcare will enhance its marketing capabilities in India as part of its emerging market growth strategy, while Zydus can strengthen its network with global healthcare players. “With this step, Bayer Healthcare aims to significantly accelerate its capabilities to better serve the fast growing Indian market,” said Bayer Healthcare AG Jorg Reinhardt.
Zydus Cadila has eight manufacturing facilities across India and is also present in the regulated markets of US, Europe and Latin America.
Zydus had posted a total income of Rs 1,170 crore in the quarter ended December 31, up 18 per cent from Rs 994 crore in the corresponding period last financial year. Bayer Healthcare is part of the Bayer AG Group with an annual sales of over euro15.9 billion in 2009.