The Hindu Business Line : Shasun, Eastman Chemical in tie-up — To make performance chemicals for pharma cos

Dr Greg Nelson, Chief Technology Officer, Eastman Chemical Company, USA, and Dr S. Devendra, Managing Director, Shasun Chemicals and Drugs Ltd, at a press conference in Chennai on Tuesday. - Bijoy Ghosh

Chennai , June 15

SHASUN Chemicals & Drugs signed an agreement with Eastman Chemical Company, US, to collaborate on the development and manufacture of performance chemicals for the pharmaceutical industry.

At a press conference today, Shasun's CEO, Mr N. Govindarajan, described the agreement as a strategic alliance.

The agreement is like an umbrella tie-up that would subsequently give rise to pacts to deal with individual products.

The companies have already short listed two products for collaboration.

The tie-up has two dimensions. Shasun will be the toll manufacturer for some products and look after the Indian market.

The companies will also collaborate on developing products, thereby opening up the possibility of Shasun jointly owning intellectual property rights on some products.

The current deal follows an earlier one between the companies for excipients (binding material in tablets). Under the earlier deal, Shasun acquired the technology for two excipients and commercialised them.

Eastman Chemical Company's Chief Technology Officer, Dr Greg Nelson, said his company's decision to collaborate was sparked by the need to offset cyclical swings.

He said companies would have to collaborate to innovate and grow in their businesses.

Dr Nelson added that in future, Eastman's Chemical's R&D expenditure would also be directed outside the company.

More Stories on : Alliances & Joint Ventures | Pharmaceuticals

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