Biocon enters into JV with Neopharma of UAE

Bangalore: Biocon has announced a 50:50 joint venture with Neopharma, an Abu Dhabi-based company promoted by NRI Dr BR Shetty.

With this agreement Biocon has entered the rich GCC (Gulf cooperation Council) market of six Arab States - UAE, Bahrain, Kuwait, Saudi Arabia, Oman and Qatar.

The new entity to be incorporated in Abu Dhabi will initially take at least 10 of Biocon's life-saving drug products to these countries. The range will include Biocon's generic and novel therapeutics to treat cancer, diabetes, cardiovascular diseases, auto-immune drugs and  immunosuppressants.

In the second phase, the company is likely to begin manufacturing also. Biocon's insulin is already sold in the West Asian market but through a licensing arrangement. As per a MoU they signed on Thursday, the new company will have a dedicated sales force trained by Biocon and operating directly under Biocon's control.

Dr Shetty is known for his role in healthcare in the UAE through a chain of hospitals, pharmacy chains and an integrated pharmaceutical distribution network. The tie-up would give Biocon a foothold in a new and promising region, while enlarging Neopharma's range into biotechnology.