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."
Mayne's group managing director and chief executive officer, Stuart James, said, "The joint venture with Zydus Cadila is part of our strategy to marry our broad international sales and marketing reach with a globally competitive supply chain. In addition to improving the efficiency of our existing sites, we are partnering with leading companies around the world that develop and manufacture US FDA-quality pharmaceuticals at industry best-practice costs. This joint venture, in conjunction with the significant investments being made at our Mulgrave and Aguadilla facilities, gives us the capacity, flexibility and efficiency that we will need to satisfy our growth ambitions over the medium term."
Mayne Pharma (2004 revenue: A$ 3.5 billion) is a leading international pharmaceutical organisation providing innovative and cost effective healthcare products with a 150-year heritage with markets in over 50 countries. The group is the market leader for sales of generic, injectable oncology medicines in the UK, and holds a leading position in the generic hospital pharmaceuticals markets in Europe, Asia Pacific, the Middle East and North America. A team of more than 200 scientists, chemists and regulatory affairs specialists spearhead the group's research and development efforts. With revenue in its 2004 fiscal year of A$3.5 billion, Mayne Group employs more than 10,000 employees in its businesses of injectable specialty pharmaceuticals (Mayne Pharma), diagnostic services (pathology, diagnostic imaging and medical centres), pharmacy and health-related consumer products.
With a turnover of Rs 13.1 billion, Zydus Cadila is one of India's leading pharmaceutical companies with an extensive manufacturing base comprising eight state-of-the-art manufacturing facilities spread across four states in India. On a path of accelerated growth, the group has been consolidating operations globally, particularly in Europe and the USA and aims to emerge as one of the top ten global generics company by 2010.
With a proven track record in partnering alliances and joint ventures, Zydus Cadila has forged successful partnerships with global pharma MNCs such as Altana Pharma, Schering AG, Mallinckrodt, Boehringer Ingelheim, Madaus AG, Berna Biotech, Zentaris AG and Zambon, to name a few. The group employs over 6,000 employees and has business operations in more than 40 countries worldwide.