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news.AstraZeneca has entered into a generic drug partnership with India-based Torrent Pharma, to brand and market 18 of the Indian drugmaker medicines in 9 emerging economies where it already has a strong commercial footprint.
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As per the agreement, Torrent will provide AstraZeneca with a portfolio of generic medicines for which the Indian group already has licenses in a range of countries, starting initially with 18 products in nine countries. Torrent will manufacture the medicines working to AstraZeneca’s rigorous quality and process standards.
Reportedly, AstraZeneca is facing stiff competition on seven drugs by 2014, including its three biggest sellers: Nexium for ulcers, the antipsychotic Seroquel and Crestor for cholesterol. According to David Brennan, CEO of AstraZeneca, the dip in sales may result in a period of fluctuating earnings. He is of the opinion that external partnerships with generic drugmakers will help the firm in maintaining double digit growth in the emerging markets.
Against this backdrop, the British-Swedish pharma major is following other big drug makers GlaxoSmithKline and Sanofi-Aventis which also have been eager to forge agreements to foray into the emerging markets to increase thier generic drug sales. AstraZeneca intends to increase generic sales in emerging markets to 25% of annual revenue over the next five years, from 13% in 2009.
Renaud Savary, head of branded generics unit at AstraZeneca, said: “Clearly, we see branded generics as a way to accelerate growth in emerging markets. The products were carefully selected in therapy areas we’re strong in. We believe we can be successful in building market share and brand equity.”
In a statement, AstraZeneca said: “Emerging markets are forecast to contribute around 70% of pharmaceutical industry growth in the next five years, and branded generics represent approximately 50% by value in these emerging markets. AstraZeneca believes it can capitalize on this opportunity and over time plans to broaden its portfolio beyond these initial 18 products.”
Tony Zook, head of AstraZeneca’s global commercial organisation, said: “In markets where consumers and physicians have a strong preference for trusted brands, we believe AstraZeneca’s long-standing reputation for quality is a sustainable competitive advantage.
“Working in partnership with Torrent will extend the range of branded medicines we can offer to patients in emerging markets, where we see continuing opportunities for our business to grow. We have chosen Torrent because of their complementary product portfolio and proven ability to manufacture to AstraZeneca’s high quality standards.”