Celon Laboratories Limited, a Hyderabad-based pharmaceutical company, on Monday said that it had entered into a joint venture (JV) with Aurobindo Pharmaceuticals Limited to develop and market niche hormonal and oncology generic formulations for the regulated markets.
Under the agreement, Celon has incorporated a JV, Eugia Pharma Specialties Limited, in which Aurobindo owns 60 per cent of the equity while Celon retains the remaining.
Both the companies will be making an investment of between Rs 180 crore and Rs 200 crore in the JV in the next two to three years while the initial capital expenditure of Rs 90 crore would be spent in the next one year to 15-month period, according to M Nagesh Kumar, chief financial officer of Celon Laboratories.
As part of these investments Celon is transferring one of its upcoming hormonal manufacturing facilities located at Shamirpet Biotech Park in the city, which enables to file or submit products for the US and other markets from 2014, the company said in a press release.
“This joint venture brings both companies one step closer in developing high quality, complex injectable hormonal and oncology products and support their strategy to enter key regulated markets including the US and Europe,” said Vijay Vasireddy, chief executive officer of Celon.
The company, which currently manufacturers 170 products in critical care, oncology and gynaecology for India and other unregulated markets, aims to capitalise on Aurobindo's experience in working with the United States Food and Drug Administration (USFDA) as well as its marketing and sales network in the US and Europe.
The JV seeks to approach the USFDA for the approval of the Shamirpet facility once it is ready with both hormonal and oncology divisions by March next year.
Sequoia capital, which had invested Rs 70 core in 2011 and over Rs 12 core last year in Celon Laboratories, owns 55 per cent stake in the company though the promoters group has the management control.
Commenting on the JV, VT Bharadwaj, managing director, Sequoia Capital, said: “We are excited about the partnership with Aurobindo in this venture and are looking forward to the commencement of operations of the facility.”
