The Hindu Business Line : Strides Arcolab forms jt venture with Akorn

STRIDES Arcolab Ltd and US pharma company Akorn Inc have announced that they have formalised the creation of a 50:50 joint venture that will be Strides' plank to enter the US hospital supplies segment.

The two companies signed an MoU towards this in April.

Akorn-Strides (A-S) LLC, the new Delaware-based company, will have an initial capital of $2.5 million to finance the preparation of Strides' ANDAs (abbreviated new drug applications) in the US, an official release said.

The joint venture has identified 20 generic and post-patent injectable and lyophilised drugs in the first phase.

Bangalore-based Strides will develop, manufacture and supply products under an OEM agreement with the joint venture.

Akorn, which makes and markets sterile specialty pharmaceuticals, will be responsible for the sales and marketing of the products under an exclusive sales and marketing agreement with A-S.

As per the OEM agreement, the NSE-listed Strides will receive funds to finance the preparation, development and filing of ANDAs with the Food and Drug Administration for generic drugs based on a mutually agreed development schedule.

A-S will have exclusive rights to the FDA-approved generic drugs within the US hospital, medical clinic, physician group and other wholesale drug markets.

Akorn in turn will market, advertise and sell generic FDA-approved drugs supplied to A-S by Strides. For each generic drug, Akorn has been set a minimum market share target and will receive a commission on the sales.

Strides MD and Group CEO, Mr Arun Kumar, described the development as a major milestone in the company's US market plans, particularly in the hospital arena and said they expected the joint venture to emerge a significant player in this segment.

Akorn's President and CEO, Mr Arthur S. Przybyl, said the joint venture "represents another milestone in our ongoing commitment to expand the breadth of our product portfolio for the US hospital market... Akorn will utilise its existing sales and marketing distribution channel strategies in order to capture market share for these products."

More Stories on : Alliances & Joint Ventures | Pharmaceuticals

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