Sun Pharmaceutical Industries on Monday announced a 50:50 joint venture (JV) partnership with US-based drugmaker Merck and Co Inc to develop, manufacture and commercialise new combinations and formulations of incrementally innovative, branded generics in emerging markets (EMs).
The JV will be structured through Merck’s Indian arm MSD Pharma and Sun Pharma’s R&D arm, Sun Pharma Advanced Research Company Ltd.
However, the financial details of the deal was not disclosed. “It will leverage Merck's market presence and regulatory competence across emerging markets,” said Sun's chairman and managing director, Dilip Shanghvi.
No financial implication is expected for the next three years under the JV. On Monday, shares of Sun Pharmaceutical increased two per cent to close at Rs 450.25 on the Bombay Stock Exchange.
In January, German drugmaker Bayer had signed an agreement with India’s Cadila Healthcare to set up a joint venture to market products locally.
“Merck's emerging markets strategy is driven by our overarching focus on applying innovation across our business from introducing novel compounds to broadening our focus on innovative branded generics,” said Kevin Ali, president, emerging markets, MSD.
During the next decade, emerging markets are expected to drive 90 per cent of the world's pharmaceutical growth, with 75 per cent of the growth coming from branded generics. In these markets, the growing burden of chronic diseases – like cardiovascular ailments, diabetes and hepatitis – along with an increasing population and economic prosperity, is leading to an increased demand for branded generics, said a Sun Pharma statement.
The collaboration between MSD and Sun Pharma will be managed by a joint board and leadership team, comprising members of the senior management from both companies.
