Sun Pharma, Merck form joint venture

Indian pharma major Sun Pharmaceutical Industries on Monday announced a 50:50 strategic joint venture partnership with global drugmaker Merck and Co Inc to develop, manufacture and commercialise new innovative drugs in emerging markets over the next 2-3 years.

The JV is likely to be inked in the next few weeks and both companies are evaluating a name for the proposed entity that will develop new combinations and formulations in Asia-Pacific, Latin America, Eastern Europe, West Asia and Africa.

"This joint venture reinforces our strategy of partnering to launch products using our highly innovative delivery technologies around the world," Sun Pharma Chairman and Managing Director Dilip S Shanghvi said.

He, however, declined to divulge any financial details related to the partnership.

Merck, known as MSD outside the US and Canada, operates in 140 countries in prescription medicines, vaccines and biological therapies, while Sun Pharma manufactures and markets a large number of pharmaceutical formulations as branded generics in India, the US and several other markets.

"Our emerging markets strategy is driven by our focus on applying innovations across our business from introducing novel compounds to broadening our focus on innovative branded generics," MSD President (Emerging Markets) Kevin Ali said.

MSD expects that by 2013 over 25 per cent of its total revenues would come from the EMs that are expected to drive 90 per cent of the world's pharma growth, 75 per cent of it coming from branded generics.

In these markets, the growing burden of chronic disease, such as cardiovascular disease, diabetes and hepatitis, along with an increasing population and economic prosperity, is leading to an increased demand for branded generics, the companies said in a statement earlier in the day.