The JV, involving an investment of about $6 million, is a financial and marketing collaboration with the European firm which has an extensive network in marketing and out licensing dossiers and obtaining high-end manufacturing contracts, said Group CFO,Medreich Ltd,Praveen Iyer.
Both the companies will be holding equal share in the JV. As per the agreement, a new R&D unit would soon be set up in Bangalore. One of the key areas of the R&D is to focus on development of the products coming off patent in the years 2011-2015.
"The emphasis is on developing new drug delivery system to mount on the product and give it a new and more effective presentation," he said. Technologies such as fast-dissolving drug delivery are recently gaining popularity. A tablet that can easily dissolve in the mouth, without requiring any water, is being preferred by special population groups with swallowing difficulties and also by the general population. Such tablets lead to better patient compliance.
"There is a huge potential as large pharmaceutical companies are looking for new technologies to add new lease of life to existing products. However, research costs in this area are prohibitive, and hence more and more companies are looking at collaborative work. We see a wealth of opportunity where the skills of the Indian companies can be combined with the market research and penetration of the global companies to develop cutting edge products," Iyer said.Medreich will appoint about 70 scientists in the new R&D unit for the first phase of development.
The company will also tap into the resources of its partners in Europe to bring in new technology. "We are targeting large and mid size global firms in EU for marketing our products. We will be looking at West Asia and the US later," Praveen added.
Medreich Ltd manufactures generic and branded drugs in several therapeutic areas. It has a 100 per cent subsidiary in the UK, Medreich Plc. Medreich group, with a a presence in over 54 countries, registered sales worth $98 million for the year ending March 2008. The company recently signed an agreement with the South Africa based Adcock Ingram Holdings to set up a joint venture in Bangalore to cater to customers in the South African market.
Medreich produces drugs for global pharmaceutical companies such as GSK, Pfizer, Sanofi Aventis, Wyeth and Merck.
