7 Chemicals, an Ahmedabad-based exporter of pharmaceutical raw material, finished formulations and chemicals, is emerging as a major player in the Russian and other CIS countries.
Recently the company 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" says Rakesh, director, 7 Chemicals.
About a few months ago, the company entered into a joint venture agreement with Aeromed of Azerbaijan to supply oncology, cardiovascular and gastroenterological drugs, worth 2 million USD per annum. The products are contract manufactured in India by 7chemicals. Aeromed, a 25-million US$ pharmaceutical manufacturer located at Packu in Azerbaijan, will package and supply the drugs in Azerbaijan and nearby CIS countries.
7chemicals 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.
The company has marketing offices in Moscow, Georgia and Azerbaijan, Armenia, Chile, Philippines and South Africa and exports products to about 45 countries. 7 Chemicals is into manufacturing a wide range of APIs and formulations like artemisinin albendazole, amlodipine besylate, ampicillin, azithromycin, alprazolam, cephalaosporins, as well as statins and enzymes, anti-diabetics, anti-cancer, anti-asthmatics, steroids etc. The company has been working with Indian counterparts like Aarti Drugs, Unichem, Saraca, Synthokem, Lincoln Pharma, Granulels India, Krebs, Ind-swift, Kairav and many others. With warehouses in Frankfurt, Germany and Moscow, 7 Chemicals, the company is into contract-manufacturing business for the last 3-4 years.