Beaufour Ipsen International, France and Chemech Laboratories, Chennai have signed an agreement of confidence as a prelude to signing the formal memorandum of understanding (MOU) which will enable the latter to market the former''s endocrinology product, Somatuline (30mg powder + 60 mg, 90 mg, 120 mg Autogel) in India.
Pharmabiz.com had reported in July that the French company was eyeing India for expanding operations and a likely tie-up with Chemech was in the offing. The French company was planning to enter the Indian market through a venture with an Indian company, and the abovementioned agreement of confidence is towards the same. Somatuline will be the second life saving drug, to say so, in Chemech''s portfolio, the other being B-Crip, a non-steroidal hormone.
This is the second such collaboration for Chemech Laboratories with a French pharmaceutical company. It already has an ongoing tie-up with Laboratories Besins Iscovesco, France. Life (human choroanic gonadotropin) and Utrogestan (natural micronised progesterone) are the two products that Chemech markets in India following its tie up with Besins Iscovesco. Apart from the above tie-up, the company has tie-ups with Czech Republic based Galena Laboratories, now a wholly owned subsidiary of US based Ivax Corporation and Instituto Massone, Argentina besides Kamada of Israel.
The agreement of confidence entails exclusive marketing rights for Chemech Laboratories to market Somatuline in India. According to T.S.Jaishankar, Managing Director, Chemech Laboratories, his company has been accorded the exclusivity in marketing Somatuline, indications for which is gigantism and carcino-tumours, in India through the agreement of confidence. He further maintained that the product would be marketed in India in early January a few weeks after the memorandum of understanding was signed. He maintained that his company would be marketing the product under a different brand name, the work for which is being done in consultation with the French company. The French company has already obtained the approval for the product from the Drug Controller General of India (DCGI).
Somatuline will be promoted as an endocrinology product eventhough it is labeled as a life saving drug in some of the countries where Beaufour Ispen has operations. According to Jaishankar, the product currently attracts a basic duty of 15 per cent with no counter veiling duty, and Chemech Laboratories has moved the Indian government to exempt the product from any duty owing to its life saving nature. Jaishankar added that the pricing of the product would be done after considering the Indian government''s move regarding duty exemption.
Beuafour Ipsen currently markets Somatuline in Korea, Taiwan, Malaysia and Singapore among Asian countries and plans to introduce the same in China two months from now. The French company has, among other innovative products, a product in injectable form that helps erase wrinkles on forehead and at the tail of the eye when injected. The company is also looking at introducing the product into the Indian market which has a high potential for the said product and can be described as an anti-ageing and cosmetic enhancing product in one combination
Currently Beaufour Ipsen has operations in 110 countries worldwide. It recorded a turnover of 700 million Euros in the last fiscal.