Cadila, Mayne in pact for generic JV

The Ahmedabad-based Cadila Healthcare Ltd and the Australia-based Mayne Pharma on Thursday signed an agreement to set up a 50:50 joint venture company to manufacture generic injectable, cytotoxic (anti-cancer) medicines and active pharmaceutical ingredients (APIs) for global markets.

Cadila plans to commence the construction of the plant in the second quarter of the current financial year.

However, the company did not disclose exactly where the facility will be set up and the estimated investment. "Other details are being worked out," said a spokesperson.

While Cadila has a presence in more than 40 countries, Mayne is present in 50 countries.

"The joint venture with Cadila is part of our strategy to marry our broad international sales and marketing reach with a globally competitive supply chain," Mayne Group managing director Stuart James said in a statement.

The venture will allow Mayne to get around Australian rules against companies making a generic drug in Australia for export to countries where the drug patent has expired if the patent is still valid in Australia.

Both companies will have equal representation on the board of directors of the new company.

The plant will manufacture both solution and freeze-dried products and is expected to have a maximum capacity of about 10-12 million vials per annum. The first set of products is expected to be launched around the middle of 2007.

Pankaj Patel, chairman and managing director of Cadila, said in a statement, "With both partners pooling their strengths there is a tremendous advantage in terms of expertise, cost benefits and technology which benefits both companies and the community at large in terms of employment generation and better healthcare therapies."

Mayne Pharma's revenue in its 2004 fiscal year was A$3.5 billion and the group runs the businesses of injectable specialty pharmaceuticals, diagnostic services, pharmacy and health-related consumer products.

Mayne has a deal another Indian drug maker Intas Pharmaceuticals to make one of its future chemotherapy drugs.

Meanwhile, Cadila has a turnover of Rs 1,170 crore. The company has been consolidating operations globally, particularly in Europe and the US.