The Hindu Business Line : Lupin, Glaxo part ways on Philippines agreement

Break up
The alliance had not progressed possibly because GSK was looking to promote its own products.
Industry source indicate that Lupin would continue to target the Philippines market.

Mumbai May 14 The agreement between drug-makers Lupin and GlaxoSmithKline (GSK), to market tuberculosis drugs in the Philippines, seems to have come unstuck.

Lupin had entered into a marketing alliance with GSK Philippines in 2005 for the promotion of two of Lupin's TB drugs in the Philippines. Both drugs were fixed-drug combinations, with one combining four medicines into one drug and the other combining two medicines.

The alliance between the two companies has not progressed, possibly because GSK may be looking to promote its own products, rather than generic copies of other companies, an industry source familiar with the development told Business Line.

Important market

Though no financial details had been divulged on the deal, the agreement was to leverage Lupin's intellectual property and technology in TB medication with the strong marketing infrastructure of GSK in the Philippines, Lupin had said when the deal was forged.

The Philippines, however, continues to be an important market for the Mumbai-based drug company, as it ranks eighth among the 22 countries across the world that have a high disease burden.

The industry source indicated that Lupin would continue to target the Philippines market. And its strategy would combine partnering with another company along with selling on its own.

Lupin had got into a slew of TB-related alliances in 2005. It had tied-up with Aspen Pharmacare to market its drugs in South Africa and subsequently entered into another tie-up with Ranbaxy for the West and North African market. A top official with the company indicated that the alliances were likely to bear fruit this year and reflect in the company's performance.

Delay in Japan

However, in January this year, Lupin discontinued another alliance with Aspen to set up an equally partnered joint venture in South Africa. More trouble emerged on the alliance front, with Lupin's alliance in Japan set to get delayed, the source indicated. A product covered by the agreement in Japan has got an extension on its product-patent, he said, without divulging details. As a result the deal could well see a three-year delay, the source said.