Vadodara-based pharma player, Alembic Pharmaceuticals Ltd on Tuesday announced signing of a Joint Venture Agreement (JVA) with a Chinese player, SPH SINE Pharmaceutical Laboratories Co Ltd, China (SPH Sine), and Adia (Shanghai) Pharma Co Ltd, China (Adia) to promote and sell pharmaceutical products in the Chinese market.
The joint venture, where SPH Sine and Alembic will hold 51 per cent and 44 per cent equity stake respectively, besides 5 per cent with Adia, will look to set up a manufacturing facility in China, besides commercialising existing products being manufactured by Alembic Pharmaceuticals Ltd at its facilities in India.
The terms of the joint venture agreement include management functioning, restriction on transfer of shares, non-compete and termination events and consequences. The registered capital of the JV company will be RMB 1 million (approximately Rs 1 crore), which will be contributed by the equity partners proportionately to their equity stakes.
"The JV will commercialise products in the Chinese market, which has an increasing demand for generic drugs. It will initially launch with a portfolio of oral solids and is expected to widen to other areas such as injectables, ophthalmology, dermatology and oncology, which are being currently developed and manufactured by Alembic," a company statement said.
The signing of the JVA was done at the Vadodara headquarters of Alembic Pharmaceuticals in the presence of Zhao Yong, Chief Minister of SPH Group, Gu Haoliang, Chairman of SPH Sine, Chirayu Amin, Chairman & CEO of Alembic, Pranav Amin, Managing Director of Alembic and Hua Wei, President of Adia.
Alembic Pharmaceuticals has filed 161 ANDA and 93 approvals (including tentative). The company has filed 100 DMF as on date.
Alembic is one of the leaders in branded generics in India. Alembic's brands, marketed through a marketing team of over 5,000, are well recognised by doctors and patients.