Companies

Dr Reddy’s, Fujifilm tie up for generics biz in Japan

G. Naga Sridhar Hyderabad | Updated on March 12, 2018 Published on July 28, 2011

Mr G.V. Prasad, CEO, Dr. Reddy's Labs

Pharma major Dr Reddy's Laboratories Ltd has entered into a memorandum of understanding with Tokyo-based Fujifilm Corporation to form a joint venture in Japan.

The proposed venture would develop, manufacture and promote generic drugs in Japan, the Hyderabad-based company announced on Thursday.

Stake

Dr Reddy's and Fujifilm would have 49 per cent and 51 per cent stake in the company, respectively. A definitive agreement would be signed during the course of the calendar year.

The joint venture intends to launch its first products in Japan in the next three to four years. It would also develop products to suit specific requirements of the Japanese market in the generics space.

“With the execution of the MoU with Dr Reddy's Laboratories Ltd, Fujifilm will have excellent capability in developing and manufacturing across active pharmaceutical ingredients (API) and formulations of generic drugs,” Mr Shigetaka Komori, President and Chief Executive Officer, Fujifilm Corporation, said in a release.

Fujifilm, with its advanced technologies in the field of photo imaging, is now applying its technologies to the prevention, diagnosis and treatment of diseases in the medical and life science fields.

“We are confident that Fujifilm's advanced R&D capabilities, quality systems and market know-how backed by Dr. Reddy's generic drug development and manufacturing and experience will help the joint venture establish a strong presence in the Japanese pharmaceutical market,” Mr GV Prasad, Vice-Chairman and CEO, Dr Reddy's, said.

Pharmaceutical market

Japan is the world's second largest pharmaceutical market with an estimated value of $97 billion, according to IMS.

The market was marked by low penetration with only about 23 per cent of Japanese prescription drug sales (by volume) contributed by generics as compared to 70 per cent in the US.



Published on July 28, 2011
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