Alembic Pharma partners with SPH Group, Adia for Chinese market

SPH Sine, Alembic Pharma and Adia will hold 51 per cent, 44 per cent and 5 per cent equity in the JVA.

Vadodara: City-based Alembic Pharmaceuticals has recently entered into a Joint Venture Agreement (JVA)with SPH SINE Pharmaceutical Laboratories Co Ltd, China and Adia Pharma Co Ltd, Shanghai to promote and sell pharmaceutical products for the Chinese market.

The JV will entail SPH Sine, Alembic and Adia holding 51 per cent, 44 per cent and 5 per cent equity stakes, respectively.

The deal has standard terms including management functioning, restriction on transfer of shares, non-compete and termination events and consequences. The registered capital of one million Chinese yuan (RMB) or roughly Rs one crore is to be contributed by the equity partners in proportion to their stakes

Initially, this JV will commercialize products manufactured by Alembic Pharma and subsequently, the JV plans to set up a manufacturing facility in China 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 like injectable, ophthalmology, dermatology & oncology which are being currently developed and manufactured by Alembic Pharma," the company said in a filing.

Also Read: Alembic Pharma JV gets EIR from USFDA for Karakhadi facility

SPH Sine Pharmaceutical Laboratories Co Ltd is a controlling subsidiary of Shanghai Pharmaceuticals Holding Co Ltd which is a vertically integrated and diversified pharmaceutical group while Adia (Shanghai) Pharma Co Ltd has expertise in the field of pharmaceutical import & export, cGMP consultation, US FDA and EDQM regulatory registration, IDL registration with CFDA, China generic drug consistency evaluation.

Indian players like Dr Reddy's Laboratories have a presence in the Chinese market while others like Cipla, Sun Pharma and Wockhardt are reportedly testing waters.

Medical Dialogues had earlier reported that Sun Pharmaceutical Industries Ltd. (Sun Pharma) was scouting for a partner in China to help it win a larger piece of the world’s second-largest drug market.

The $160 billion Chinese drug market has reportedly been focusing for Indian generics as U.S.-approved drugs are cleared faster.

Also Read: China war on healthcare costs lure Indian drugmaker Sun Pharma: Report