Onco Therapies Limited (OTL), the joint venture between Strides Arcolab Limited and Aspen Pharmacare Holdings Limited has inked a licensing and supply agreement with GlaxoSmithKline for supply of finished dosage forms.
The licensing and supply agreement is for 95 emerging market countries excluding Sub-Saharan Africa and India. OTL will recover intellectual property development costs from GSK in addition to sharing profits with GSK from the commercialization of the products. The products commercialized under the arrangement are expected to be launched in 2010.
According to Arun Kumar, vice chairman and chief executive of Strides, the deal with GSK reflects the value which has been created out of the joint venture between Strides and Aspen. Aspen is an important partner of Strides with collaborations on a global basis. OTL has a robust product pipeline which augurs well for the future growth of this business. The deal is also testament to the quality and capability of OTL's development and production.
"We see this as a great opportunity to extend the worldwide reach of the OTL business benefiting from GSK's excellent strength in branding and marketing. GSK will achieve effective distribution for products in many countries which OTL is presently unable to reach. The OTL joint venture has provided GSK with an attractive product offering and I would like to commend the significant contribution from Strides in this regard. This deal further extends the mutually beneficial relationship between Aspen and Strides," Stephen Saad, Aspen Group chef executive said.
Strides has 16 manufacturing plants spread across Brazil, Mexico, Italy, Poland, Singapore and India. These broad manufacturing network facilities partner with global procurement organizations to European and American pharmaceutical multinationals and also private labelers and distribution chains. It has product registrations worldwide. The Indian manufacturing facilities for the regulated markets are approved by all major regulatory bodies such as MHRA, EU, TGA, MCC and US FDA and GMP accreditations including US FDA. Strides employ approximately 2,500 people across the globe.
South African-based JSE-listed Aspen is Africa's largest pharmaceutical manufacturer and a major supplier of branded and generic pharmaceutical, healthcare and nutritional products to southern Africa and selected international markets.