Lupin Limited and Aspen Pharmacare Holdings Ltd., South Africa, have entered into a Memorandum of Understanding (MoU) for establishing a 50:50 joint venture for development, manufacture and global marketing (except US, South Africa & India Trade) of selected anti-TB products.
While Lupin has traditional strengths in anti-TB formulations and Active Pharmaceutical Ingredients (APIs), Aspen will bring a range of MDR-TB products to the venture. Both the companies believe that there would be synergies derived from Lupin's traditional strengths and Aspen's experience in the anti-retroviral business and Africa presence. There is a global trend of bundling the treatments of HIV, TB & Malaria.
Dr D B Gupta, chairman, Lupin Limited, said, "We believe that this is a very important step in providing comprehensive therapeutic care in the areas of conventional TB, MDR-TB and Malaria, which are pandemic in nature and a concerted effort is required to provide treatment to the infected. Lupin and Aspen together are best suited to address these disease areas."
"Aspen has long been committed to sourcing and providing solutions to infectious diseases encompassing HIV/Aids, TB and Malaria. Our efforts are underpinned by strategic agreements entered into with leading multinationals for the manufacture and supply of multi-drug resistant tuberculosis (MDR-TB) products and generic anti-retrovirals (ARVs). This agreement further emphasises our resolve to be an active participant in fighting these diseases which are such a scourge on our continent," said Stephen Saad, Group CEO, Aspen Pharmacare Holdings Ltd.
As per current statistics, 8.6 million fresh TB cases get diagnosed every year and it is believed that only 70 per cent of the infected are diagnosed and a lesser percentage actually treated. Estimates by a study group constituted by WHO in 2001 puts the market size at USD 550 - 600 million for the first line TB products. Out of this, 50 per cent of the market is considered to be Institutional and the balance is prescription based. The multi-drug resistant TB (MDR-TB), which is caused by bacteria resistant to Rifampicin and/or INH or both, is emerging as a major problem.
While the cost of treatment of normal TB with first line drugs is estimated at USD 40 - 100 per patient, the MDR-TB treatment cost is substantially higher. The cost of treatment is about USD 800 per patient under WHO managed program as per Green Light Committee. The MDR-TB market is expected to grow exponentially over the next 4-5 years.
The JV will also investigate opportunities to enter the Malaria market. The total malarial market is estimated at approx. USD 500 million, of which 85 per cent is concentrated in Africa.