Strides Arcolab, a generics over-the-counter and nutraceuticals player, has signed a development and manufacturing agreement with SORM Co., Japan, for the long-term supply of generics, OTC and nutraceutical products.
In the first phase, Strides Arcolab will supply 16 OTC and Rx products, which will be distributed by SORM, all over Japan in leading store chains. The company will also undertake developmental work on 34 additional products. Strides have already received contracts and shipment schedules for four products worth Rs.250 million. The first shipments in these annual contracts are scheduled to begin in the current quarter.
As per the agreement, Strides will be SORM's 'Priority Global Manufacturer' for OTC and nutraceutical products. Additionally the companies have also agreed in an MOU to form a joint venture company in Japan, to get an early lead in the emerging opportunity for generic drugs in Japan where Strides will be the exclusive supplier to the joint venture.
Arun Kumar, Group CEO, Strides Arcolab said: "The agreement with SORM forms part of our global strategy for partnering for leadership. With core strength in formulation development and new-drug delivery technologies, we are confident of emerging as priority global manufacturers to leading pharmaceutical companies in the regulated markets in the EU, UK, US, South Africa, Australia/NZ and Japan. Coupled with SORM's strong distribution and understanding of the pharma market both in retail and pharmacies in Japan, we are on a strong footing".
Toshi Yanagisawa, president and CEO, SORM said, "Partnering with Strides helps to offer affordable healthcare products to Japanese customers. We are convinced about Strides' capabilities in product development and regulatory skills, which we can leverage in delivering value to customers."
Strides Arcolab has a global presence with factories in India, Brazil, Mexico and USA. Its products are sold in more than 50 countries in Latin America, South East Asia, Africa, Australia and Russia. All major regulatory bodies like UK-MHRA/EU/Australian-TGA and South African MCC have approved of the company's Indian manufacturing facilities. The stock is listed on the National Stock Exchange.