Strides Pharma Science said on Monday it has entered into a joint venture with China's Sihuan Pharmaceutical Holdings Group with a view to fast track its entry into the neighbouring country.
The JV pact was inked between Indian firm's step-down subsidiary Strides Pharma Global Pte, Singapore(SPG) and Sun Moral International (HK) Limited, a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd (Sihuan).
The JV fast tracks Strides' entry into China, the second-largest pharmaceutical market in the world offering a USD 137 billion (IQVIA) market opportunity, Strides Pharma Science said in a statement.
Both the companies will set up a new JV company based in Hong Kong to be christened as Sihuan Strides HK Ltd. SPG will own a 49 per cent stake in this company, it added.
Sihuan will leverage its over 4,000 strong sales force and 3,000 plus distributors across Mainland China to market the products, the statement said.
As part of the agreement, Strides will immediately license four high potential products to the JV which will add significant value to Sihuan's existing portfolio.
More From This Section
It will also supply these products to the JV from its manufacturing facilities at India and Singapore.
The JV will explore setting up local manufacturing in China in due course, Strides Pharma Science said.
"We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China," Strides Group CEO and Managing Director Arun Kumar said.
Sihuan Chairman and Executive Director Che Fengsheng said the co-operation between the both the companies is a powerful collaboration.
"Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels," he added.