The Hindu Business Line : AstraZeneca mulls brand in-licensing

Months after it made its first brand acquisition in the country, AstraZeneca has said that it is now stepping up its Indian inorganic growth agenda and moving towards brand in-licensing.

The mandate is to in-license (or take over the marketing of) 3-4 brands from fellow MNCs in therapies relevant to its own areas.

AstraZeneca is also open to taking on new but allied products "which may mean we would have to access new customers" while working with the same doctors, according to Mr Bhasker Iyer, Managing Director.

"We are trying to do two things - in-license a cluster of India-specific brands from MNCs (even as) we continue to aggressively pursue (brand) acquisitions that strategically fit into our portfolio," he told Business Line.

"(The in-licensing) could be from an MNC which is not present in India, or present but not strong in the therapy area where we can do something. These are initial days."

Without sharing the outlay for brand acquisitions or the therapeutic area, Mr Iyer only said that money was not a constraint.

The Indian arm's target is to clock at least 20 per cent revenue growth annually, according to him. Last year's turnover of Rs 232.8 crore was 18.5 per cent more than the previous year's figure of Rs 196.5 crore.

Pharma companies, according to an industry analyst, go in for brand in-licensing to perk up mutual toplines; a royalty is paid to the parent.

The licensee company lends visibility to the adopted brand, which may have lacked in the parent's marketing muscle, while gaining a foothold into its own future therapeutic domains.

In February this year, the Indian arm became the first AstraZeneca subsidiary to acquire a brand: it bought Vancocin, Eli Lilly's drug to fight hospital infection.

Mr Iyer said: "Hopefully we should have an acquisition happening again by the end of this year."

Vancocin was showing promise in tune with AstraZeneca's own Rs 50-crore flagship Meronem.

The company is also preparing itself for launches from the Anglo-Swedish parent's portfolio and joining in its clinical trials.

It is currently involved in eight trials in India, some through third parties, and is planning on 14 next year.

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