Sun Pharmaceutical Industries, a leading multinational Indian company and Merck & Co. Inc., a global health care leader, known as MSD outside the United States and Canada, have announced the creation of a joint venture to develop, manufacture and commercialise new combinations and formulations of incrementally innovative, branded generics in the emerging markets.
The partnership combines Sun Pharma's proven track record of leadership and expertise in rapid, innovative product development using Sun Pharma Advanced Research Company Ltd's (SPARC) proprietary platform technologies, and Sun Pharma’s world-class manufacturing network with Merck's clinical development and registration expertise and a broad, geographic commercial footprint.
The JV will focus on 'innovative branded generics,' that bring together combinations of medicines using platform delivery technologies designed to enhance convenience for patients in emerging markets. The JV will be structured through Merck and Sun Pharma's respective subsidiaries. Financial details of the joint venture were not disclosed.
“This joint venture reinforces our strategy of partnering to launch products using our highly innovative delivery technologies around the world,” said Dilip S Shanghvi, chairman and managing director, Sun Pharma. “Merck has an unrivalled reputation as a world leading, innovative, research-driven pharmaceutical company. We are proud to be associated with them and look forward to working together,” he added.
Adam Shecter, Global head of Merck said, “The new joint venture will create ground breaking opportunities for both the companies. Merck/MSD's core business is the discovery and development of prescription medicines for diseases and conditions that impact millions of people. MSD defines its emerging markets as the regions of Asia Pacific, Latin America, including Brazil, Eastern Europe, Middle East and Africa, as well as China.”
“Merck's emerging markets strategy is driven by our overarching focus on applying innovation across our business from introducing novel compounds to broadening our focus on innovative branded generics,” said Kevin Ali, president, emerging markets, Merck/MSD.
Experts estimate that during the coming decade, the emerging markets are expected to drive 90 percent of the world's pharmaceutical growth, with 75 percent of that growth coming from branded generics. In these markets, the growing burden of chronic disease, such as cardiovascular disease, diabetes and hepatitis, along with an increasing population and economic prosperity, is leading to an increased demand for branded generics.
“Merck has a proud legacy of developing innovative medicines and vaccines with proven ability to impact global human health. We are making good progress executing on our emerging markets growth strategy by establishing novel partnerships and strategic alliances. This joint venture helps position us for leadership in the fastest growing geographies,” said Ali.
The collaboration between Sun Pharma and MSD will be managed by a joint board and leadership team, consisting of members of senior management from both companies.