Lupin a Rs. 11,000 crore plus fourth largest Indian pharma major, has entered strategic alliance with Merck Serono, the biopharmaceutical division of Merck, for expansion initiative of Merck Serono's general medicines portfolio in emerging markets. The initiative will address local needs for affordable, high-quality medicines. Lupin will get upfront and milestone based licensing fee. The first product launches is expected in 2016 and it could add up 20 new products to the current portfolio. Both the companies agreed not to release any financial details of the transaction.
Merck Serono will expand its overall portfolio in core therapeutic areas of general medicine & endocrinology franchise in selected countries in Latin America, Asia, Central Eastern Europe, and Africa. The partnership covers major markets such as Brazil, Mexico, Indonesia, Philippines alongside several countries in Africa and Central Eastern Europe as well as other countries in emerging markets, focusing on cardiovascular and diabetes diseases.
Elcin Ergu, head of global commercial at Merck Serono, said, “The agreement with Lupin is an exciting new approach for Merck Serono to address local health needs in fast-growing regions with constantly increasing demand for high quality medicines from trusted companies like Merck Serono and Lupin. The collaboration will significantly strengthen our portfolio and Merck Serono's position as one of the major players in emerging markets, aiming to provide patients in these regions with better access to health.”
Sales in the emerging market regions are one of the key growth drivers for Merck Serono amounting to close to Euro 1.8 billion in 2013.
Vinod Dhawan, group president, Asia Pacific, Africa, Middle East & Latin America (AAMLA), said, “We look forward to working with Merck Serono leveraging our established world-class formulation development, manufacturing, supply chain and regulatory capabilities to produce a range of medications that meet local needs. This strategic partnership builds on the existing close collaboration between our two companies. We are delighted to enter into this alliance, which is an extension of our existing partnership into a much larger, multi-regional one.”
Lupin will develop product, provide product dossiers and supply finished products to Merck Serono. It will be the marketing authorization holder for the products, and will leverage its strong commercial and medical teams in emerging markets to bring new medicines in its portfolio to customers. Both Lupin and Merck Serono aim to provide high quality, affordable medicines to patients in emerging markets through this alliance.