Cadila in marketing pact with Tyco unit

Mallinckrodt to market the Ahmedabad-based firm's products in the US

Cadila Healthcare has entered into an alliance with a unit of Tyco International to sell generic drugs in the United States.

Under the agreement, Tyco's Mallinckrodt Pharmaceuticals will market generics produced by Cadila at its USFDA approved manufacturing unit in Ahmedabad.

Mallinckrodt will market and sell the products under a joint Mallinckrodt-Zypharma label. The deal, struck by Zydus Pharmaceuticals USA Inc, the US arm of Cadila, and Mallinckrodt, is for a period of five years and would be extended further by mutual consent.

Ganesh Nayak, executive director, Cadila Healthcare, said approvals have been received for the sale of seven products, the first of which will begin in June.

"This will be a win-win situation for both companies as, apart from the mutual benefits of the arrangement, the profit margins will be shared by both companies," Nayak said.

The US generic market is valued at $20 billion. By taking advantage of Mallinckrodt's marketing and distribution networks, Cadila will have an extensive reach to key market segments. And by utilising Cadila's product development and manufacturing strengths, Mallinckrodt broadens its product portfolio and pipeline.

Zydus Cadila has in the recent past, been making significant investments to enter the US generics market. The alliance with Mallinckrodt allows Zydus Cadila to jumpstart its business in the US and side step the time-consuming process of establishing a marketing network in the US. The group has already received approvals to market Atenolol and Clindamycin from the USFDA.

"Mallinckrodt is a top tier generics company in the United States and we are very excited to have such a partner. This agreement now completes our strategy for Zydus to enter the US market with our generic products," added Nayak.

Mallinckrodt Pharmaceuticals Generics is the seventh largest generic pharmaceutical company in the US.

With a turnover of Rs 1170 crore, Cadila Healthcare is one of India's leading pharmaceutical companies.

The group has been consolidating operations globally, particularly in Europe and the USA and aims to emerge as one of the top ten global generics companies by 2010.

The group has a manufacturing base comprising eight manufacturing facilities spread across four states in the country.

This includes USFDA approved formulation manufacturing facilities in Moraiya in Ahmedabad and an API facility near Vadodara.