Drug firm Strides Pharma Science on Monday said its step down subsidiary Strides Pharma Global, Singapore (SPG) has entered into a joint venture with Sun Moral International, a wholly-owned subsidiary of China's Sihuan Pharmaceutical Holdings Group, one of Chinas leading pharmaceutical companies.
Both the companies will set up a JV company based in Hong Kong to be christened as Sihuan Strides HK, where SPG will own 49 per cent stake, Strides Pharma said in a statement.
The JV fast tracks Strides' entry into China, the second-largest pharmaceutical market in the world with a USD 137 billion market opportunity.
Strides will license four products immediately to this JV with an option to expand the portfolio subsequently and will receive a licensing fee for each product in-licensed to the JV.
It will supply these products to the JV from its manufacturing facilities at India and Singapore.
The JV will explore setting up local manufacturing in China in due course, the statement added.
"We are delighted to partner with Sihuan Pharmaceutical with the initial set of products having a significant market opportunity in China. We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China," Strides Group CEO and Managing Director Arun Kumar said.
Sihuan will leverage its over 4,000 strong sales force and over 3000 distributors across Mainland China to market the products.
"Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels," Sihuan Chairman and Executive Director Che Fengsheng said.