7 Chemicals, an Ahmedabad-based exporter of pharmaceutical raw material, finished formulations and chemicals, has entered into an exclusive marketing deal with the Canadian generics major Apotex to market its products in the Russian and CIS countries.
As per the Memorandum of Understanding (MoU) signed on the first week of June, Apotex will supply bulk drugs in semi-finished form to 7 Chemicals, which will process and pack the drugs in Russia through its partner Patchem Preparthy, a large-scale drug maker in the province of Tartasten. About thirty products in various therapeutic segments of Apotex will be marketed by 7 Chemicals in Russia and CIS.
Apotex will source some of the products from Indian drug manufacturers, through 7 Chemicals. Apotex already has product registrations for the 30 products in these markets. The deal is worth about $ 5 million. Incidentally, the tie-up will help Apotex to foray into the Russian & CIS countries in a big way, informed sources.
"We have an extensive drug distribution network in Russia with offices in Moscow, Armenia, Georgia and Azerbaijan with a good marketing team and warehouses. Apotex will be able to leverage our strength in that area" Rakesh, director, 7 Chemicals told Pharmabiz.
He said the Russian and CIS drug market is valued about $ 10 billion, which includes a $ 6 billion Russian market. 7 Chemicals has also started an office in Canada, he said.
As reported two months ago, 7 Chemicals had entered into a drug supply deal with Aeromed of Azerbaijan to supply oncology, cardiovascular and gastroenterological drugs in that region. It has a tie-up with the Ministry of Health of the South African Government to run a medium sized EC certified pharmaceutical company in Botswana and has set up a 200 bedded super speciality hospital in South Africa. 7 Chemicals also had bagged contract-manufacturing deals worth over Rs 9 crore from Russia, Yemen and Croatia. The company has significant presence in Russia and other CIS countries, Philippines and Latin America, including six joint ventures for drug supply and exports products to about 45 countries.
The company has been working with Indian drug manufacturers like Aarti Drugs, Unichem, Baroque, Saraca, Synthokem, Lincoln Pharma, Granulels India, Krebs, Ind-Swift, Kairav and many others. With warehouses in Frankfurt, Germany and Moscow, 7 Chemicals is into contract-manufacturing business for the last 3-4 years.