Indoco Remedies has joined the list of Indian drug companies teaming with global counterparts for long-term supply. It has formed an alliance with US-based Watson Pharmaceuticals Inc to develop and manufacture a number of generic drugs for the market there.
The current US market size of these products is about $679 million, said Indoco, whcih has a yearly turnover of Rs 400 crore.
“This is a milestone deal for Indoco, as out-licensing technology to a company of Watson’s scale is a remarkable achievement. The deal has the potential to propel Indoco’s international business revenues to greater heights,” said Suresh G Kare, chairman and managing director.
Watson is one of the largest generic and branded drug makers in the world. This is the first such major deal for the company in India.
A dwindling pipeline of new drugs and loss of patent protection for others are forcing multinational drug companies to take up generic drug selling, which they shunned earlier. Indian companies can supply such generic products at 40 per cent of the costs incurred in the US and Europe.
