Biotechnology major Biocon on Thursday said it has signed a license and supply pact with a subsidiary of China Medical System Holdings for three generic formulation products in Greater China.
Under the terms of the agreement, Biocon will be responsible for the development, manufacturing and supply of the products and China Medical System Holdings (CMS) will be responsible for registration and commercialisation of the products in China, Biocon said in a statement.
The initial term of the agreement shall be for 10 years from the date of commercialisation, extendable by two years on a product basis by mutual consent. This collaboration can be extended to a broader portfolio in future, it added.
The development is in line with Biocon's long term generic formulations strategy and expands its generic formulations business footprint to the Chinese pharmaceuticals market, the statement said.
"This collaboration will allow us to take our US approved generic formulations to patients in China, allowing us an early entry in the world's second largest, and rapidly-growing generics market," Biocon CEO and Joint MD Arun Chandavarkar said.
As per the recent IQVIA data, the total addressable market size for these three products in Mainland China is about USD 0.8 billion, the statement said.
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Biocon's generic formulations business is built on the back of company's strong portfolio of complex and differentiated active pharmaceutical ingredients (APIs), it added.
"Through forward integration into dosage forms, the company seeks to provide a safe, efficacious and continuous supply of high quality affordable drugs to address patient needs in diverse markets," the statement said.
Shares of Biocon Ltd on Thursday closed at Rs 232.30 per scrip on the BSE, down 1.06 per cent from its previous close.
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