Strides Arcolab Limited has signed a MOU with Ribbon SRL of Italy, one of Europe's largest manufacturers of semi-synthetic penicillins and cephalosporins (both oral and sterile), for a 50:50 joint venture company (JVC) to manufacture and market cephalosporin formulations for the regulated markets.

As per the MOU, the JVC will set up a cephalosporin formulation manufacturing facility in Bangalore with a total capital outlay of USD 7 million. Ribbon will provide exclusive access to the JV for its entire range of cephalosporin DMFs (except for those already committed to other Indian players) for the regulated markets and grant priority access to its Beta-lactum products.

The JV will leverage the high chemistry skill sets of Ribbon and also capitalize on the finished product expertise in India using Ribbon's multiple Certificate of Suitability (CoS) and European Drug Master Files (EDMF) approved actives.

Arun Kumar, CEO of Strides Group said: "We are pleased with this landmark understanding with Ribbon; it consolidates our strategic positioning to emerge as a significant player in the cephalosporin business for the regulated markets. Ribbon's credibility as a world-class manufacturer of high quality Cephalosporins coupled with the technical and product expertise of Strides and Ribbon would combine well to provide exponential growth prospects. While the association with Ribbon bears testimony to our stated objective of global expansion, it also significantly enhances the product profile of our global sterile strategy."

Dr Enzo Zannini, chairman of Ribbon said, "The joint venture complements our strategy of implementing the entire manufacturing value chain to provide value to global customers. Strides and Ribbon will work together, exchange technical and regulatory skills to reduce the time to market finished products, globally."

Strides Arcolab Limited, listed on the National Stock Exchange (STAR), has presence in more than 50 countries. The company has plants in India, Brazil, Mexico and USA. It exports to Latin America, UK, South East Asia, Africa, Australia and Russia. All major regulatory bodies like MHRA/EU/TGA and MCC approved the Indian manufacturing facilities for the regulated markets.

Ribbon is a major player engaged in the manufacture of Beta-lactum and cephalosporins in Europe, with significant sales to the regulated markets. It has world-class manufacturing plants in Taccona and Villadose in Italy. The company has 11 CoS and 27 EDMFs and supplies both oral and sterile products to global majors.