Shasun Chemicals And Drugs Ltd, the Chennai-based pharma company has entered into an exclusive agreement with New-Jersey-based Alpharma Inc. for marketing its selected generic formulations in US and Europe.

Under this agreement, Shasun will develop and manufacture 10 generic formulations in specific dosage forms and strengths for exclusive distribution and marketing by Alpharma in the US and Europe.

Elaborating on the agreement, N Govindarajan, CEO of Shasun, said, “This alliance further diversifies and reinforces our regulated market growth strategy from currently focused only on APIs to a forward integrated model of extending into finished products also. The company is confident of building a strong revenue model from the regulated markets starting from 2006 in the finished dosages space, where Shasun can retain its stand of collaborating and not competing.”

Ingrid Wiik, vice chairman, president and CEO of Alpharma said, “Industry data suggests that manufacturing costs for Indian pharmaceutical companies are more than 50 per cent below US and European multi-national companies, and drug development costs are a fraction of US costs. This agreement along with our earlier announced deal with Orchid, gives us access to low cost manufacturing as well as new markets, while allowing complete control of the supply chain for an incremental stream of new products.”

The company’s ten oral formulations fall under speciality, chronic therapeutic segments such as cardio-vascular (CVS) and central nervous system (CNS) categories. The current brand market size of these 10 products in the US and Europe aggregates to around US$ 20 billion. Under the agreement, Alpharma would provide development funding to Shasun for the products based on milestones while the net profits arising from marketing would be shared between both the partners.

New Jersey-based Alpharma Inc. is a global generic pharmaceutical company with leadership positions in products for humans and animals and active presence in more than 60 countries. Shasun will commence supply of these products in support of Alpharma’s regulatory and commercial needs from 2007 based on Alpharma’s regulatory filings and approvals. Alpharma would provide development funding to Shasun for the products based on milestones while the net profits arising from marketing would be shared between both the partners.