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Lupin-Mova JV to source Rs 5b ingredients from India

Ceph International Corporation, an equal partnership joint venture between Lupin Laboratories Limited and Mova Pharmaceutical Corporation of the USA, will source its active pharmaceutical ingredients from its Indian partner, thus providing Lupin an incremental exports to the extent of Rs 5 billion in the first three years of operation.

According to Lupin chairman and managing director Desh Bandhu Gupta, the joint venture company has acquired the oral cephalosporins manufacturing facility of Eli Lilly in Puerto Rico, a Caribbean Island of the USA, with approval from Food and Drug Administration of the USA. In Puerto Rico, products would be manufactured based on API supplied by Lupin India and then marketed by Mova in the US and other developed markets.

The 50 per cent equity of the joint venture is being held by Lupin's Luxemburg subsidiary.

The synergy of strengths of Lupin in production of API in the USA and Mova's strength in dosage technology and marketing of finished products would create an integrated position for the joint venture, said Joaquin Viso, chairman of Mova Pharmaceutical.

The plant at Puerto Rico with a replacement cost of over dollar 100 million, has a manufacturing capacity of 400 metric tonnes of medicines and employment of 200 people.

The joint venture will target two business segments within the cephalosporins markets -- the multi-source cephalosporins generic market and the contract manufacturing segment. With the acquisition of the plant from the US pharmaceutical giant, Lupin also settled out of court with Eli Lilly on the cefactor pending litigation, Gupta said.

Gupta said Lupin also chalked out a three-year plan to launch cephalosporin generics in Europe and developed products well ahead of patent expiry. It has already filed over 30 patents out of which eight have been filed in the USA.

UNI

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