Dishman on the lookout for ally in Japan

Dishman Pharmaceuticals is planning to set up a joint venture company in Japan to manufacture and market active pharma ingredients (APIs).

Managing director Janmejay R Vyas told Business Standard that his company, through its associates, is in talks with a few Japanese pharma firms to float a manufacturing and marketing joint venture. An agreement is expected to be signed soon, he said.

"We are also exploring various options to seize the new opportunities in Japan, which is one of the most regulated pharma markets. These options include initiating business arrangement with Japanese companies either in the form of joint ventures or long-term intermediate supply agreements against technology transfer by Japanese player," Vyas said.

One of the most stringently regulated drug markets in the world, Japan is the second largest pharmaceutical market after the US. Dishman has been exporting APIs to that country for the last 15 years.

Vyas did not reveal the amount to be invested in the proposed joint venture. However, he said the company will provide the knowhow of its product to the Japanese partner through the new arrangement.

"Since the Japanese government has recently changed the policy on generic products, we are keen to explore this opportunity. We have initiated active dialogue with several Japanese companies to produce generic APIs in Japan for Japanese market, " he said.

Recently, Dishman Pharma had formed overseas joint venture with Arab Company for Drug Industries and Medical Appliances (ACDIMA) and Takamul Holding Company for Investments (THC). Riyadh-based Capital Advisory Group (CAG) owns THC. The new company will set up a pharmaceutical production facility in Saudi Arabia.

Company sources said Dishman will have 35 per cent equity stake in the Saudi Arabian joint venture. THC and ACDIMA will hold 35 per cent and 30 per cent, respectively. The construction of the production facility is expected to begin shortly, the sources said.