Zydus, Schering in sales pact

A group of eight products have been identified for launch in India through the agreement, five of which will hit the market for the first time.

Schering AG was one of the key collaborators with the erstwhile German Remedies Ltd, which was acquired by Zydus Cadila Healthcare recently.

It is one of the leading players in the fields of women's healthcare, contrast media and oncology. Schering AG has chosen Zydus Cadila to be the 'partner of choice' for marketing its products in India.

Zydus will manufacture Schering AG's drugs at its manufacturing facility at Moraiya near Ahmedabad. It will use its extensive marketing network - it is the fourth largest pharmaceutical company in India - to market these products.

Schering AG, too, will benefit from the deal, as it will have the advantage of economies of scale. Its products can be manufactured here at a much lower cost and the patented products can be marketed in India even after 2005.

Besides these eight products, Zydus Cadila will also manufacture select products of Schering AG for ten years, which will be extended by another five years.

All these products are in the fields of womens' care, contrast media and oncology. Contrast media is a diagnostic media which is used to detect several ailments.

Zydus officials did not disclose the names of the products that will be manufactured and marketed, but said that this will strengthen the womens' healthcare, oncology and contrast media baskets.

With most of these products being new in India, company officials said they are yet to gauge the market share that they will attract once they begin to be marketed.

Pankaj Patel, chairman and managing director of Zydus Cadila, said: "As one of the collaborators, Schering AG has played a key role in promoting the growth of German Remedies in India. We value the relationship and I believe that this strategic arrangement will be a far reaching one."

A new prescription

Deal to also cover transfer of technology to Zydus Cadila.

Eight products have been identified for launch in India through the agreement, five of which will hit the market for the first time.

Besides these eight products, Zydus will also manufacture select products of Schering AG for ten years, which will be extended by another five years.