Novartis India, the Indian arm of the Swiss multinational Novartis AG, has signed a strategic marketing agreement with the Mumbai-based Charak Pharma to market its whole range of animal health products. The agreement includes marketing of the existing veterinary products of Charak using the same brand name and also new animal health products that comes out from Charak's R&D in the future.

Talking about the strategic tie-up, Pulin Shroff, managing director, Charak Pharma, said that the deal is through now and the new marketing arrangement will begin in another two months time. With this alliance, Charak would continue manufacturing this product in its plants and Novartis' animal health division would have the marketing right by retaining the brand names of Charak. By adding up the herbal veterinary product range with its existing animal health products, Novartis would sell the products using its existing marketing team and distribution network.

Novartis, which is entering into herbal animal health for the first time with the tie-up with Charak, is expecting a four-fold jump in the turnover in this segment in the next few years. Currently, Charak's sales turnover from the animal health portfolio is Rs.2 crore and Novartis is targeting to touch Rs.8 crore sales in the next five years. Charak is now a dominant player in this segment with three major herbal animal healthcare products including Hormotone (a menstrual modulator for animals), Livovet (a liver and anti-indigestion drug) and Milchey (a drug that increases cattle milk flow).

As per the strategic alliance agreement, Charak will be given a royalty according to the sales. The agreement also includes newer products, which will be developed by Charak in its R&D. However, the alliance will give Novartis a ready portfolio of herbal animal healthcare range of products that the company wanted to focus on as a fresh avenue to be explored in the animal healthcare business. Novartis' animal health division has a presence in market segments including cattle, poultry and aqua.