Zydus in JV with Australia's Mayne to manufacture oncology products in India

Ahmedabad: Zydus Cadila and Mayne Pharma, a leading injectable specialty pharmaceuticals company based in Australia, signed an agreement today to set up a 50:50 joint venture company to manufacture generic injectable, cytotoxic (anti-cancer) medicines and active pharmaceutical ingredients (API), for global markets.

The two companies will equally share the investment in construction and validation costs of the new facility and will share in the profits of the joint venture. Both companies will also have equal representation on the JV's board of directors. The plant will manufacture both solution and freeze-dried products and have a maximum capacity of approximately 10-12 million vials per annum.

The new facility will be set up in Gujarat, where the Indian company has most of its facilities. Construction of the new facility will begin in the second quarter of 2005, following regulatory approval. The first set of products is expected to be launched around the middle of 2007. The products will be marketed globally by both companies in different territories.

Initially, the joint venture will focus on a defined range of generic, injectable cytotoxic medicines where there is an opportunity to capitalise on both the development and manufacturing benefits available in India, as well as also capturing potential vertical integration benefits that will come with the internal production of the API. Over time, both companies will assess opportunities to manufacture other generic injectable cytotoxic products at this facility.

The joint venture allows Mayne to diversify its manufacturing capabilities, improve its speed to market and address future capacity requirements. Zydus Cadila, which has forged several partnerships and alliances, gains a partner with expertise in manufacturing and marketing of injectable oncology products and other specialty products in the global market.

Speaking on the new development, Pankaj R Patel, chairman and managing director of Zydus Cadila said, "The opportunities that emerge from a long term strategic agreement such as this are enormous. With both partners pooling their strengths there is a tremendous advantage in terms of expertise, cost benefits and technology which does not just benefit both companies but cascades to the community at large in terms of employment generation and better healthcare therapies."