Zydus Cadila and Mayne Group Limited, a leading player in speciality pharmaceuticals from Australia, have signed a Memorandum of Understanding (MoU) with a strategic intent for setting up a new manufacturing Joint Venture Company (JVC) to explore opportunities to construct and operate selected cytotoxic (anti-cancer) finished products and API manufacturing facilities in India.

The partnership will explore win-win opportunities for both companies. While Mayne would stand to gain by diversifying its manufacturing capabilities and meet patent expiry in key target markets and address future capacity requirements, Zydus Cadila will gain a partner who has a proven track record in manufacturing and marketing of injectable oncology products and other speciality products in the global market, release from Zydus Cadila said here.

Speaking on the new development, Pankaj R Patel, chairman and MD of Zydus Cadila said, "Over the last few years we have been exploring several opportunities to leverage our strengths and unleash further value for the company. This new development would lead us further on in this direction. We see a tremendous potential for growth and mutually beneficial opportunities emerging as a result of this alliance and it is our intent to convert them into strategic advantage for both companies."

Mayne's Group managing director and CEO, Stuart James, said he saw value in gaining access to additional high quality cytotoxic manufacturing capacity in a low-cost and generic-friendly environment. "In the coming months we will carefully evaluate this opportunity. The cost and time-to-market benefits of manufacturing API and finished products in these environments are compelling and represent a significant opportunity to build on our current capability at our existing cytotoxic facility at Mulgrave," he said.

Mayne Group Limited, listed on the Australian Stock Exchange, has businesses in international speciality pharmaceuticals (the manufacture of injectable and oral pharmaceuticals for distribution to more than 50 countries), diagnostic services (pathology, diagnostic imaging and medical centres), pharmacy, and health-related consumer products.