rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Zydus Cadila ties up with French firm

Zydus Cadila ties up with French firm

April 06, 2006 11:53 IST

Zydus Cadila has tied up with France's second largest pharmacy network company Evolupharm to strengthen its presence in the euro1.5 billion French generics market. Evolupharm, which is the second largest distribution channel with a large network of pharmacies in France, has signed up the collaboration with Zydus France SAS, the French subsidiary of Zydus.

The deal would strengthen the distribution network of Zydus France providing the company access to 2,250 more pharmacists and supplementing its existing marketing force.

Zydus France SAS currently markets 76 generic presentations and expects to launch 30 products over the next two years.

Pankaj R Patel, chairman and managing director, Zydus Cadila, said the tie-up would help the company focus more on generic business.

"We have identified pure generics business as one of the key growth drivers in our global business operations and we want to focus on this. There are several opportunities for growth in the French generics market and hence we have decided not to have a divided focus in this key market,"

Zydus has recently sold 29 products from Zydus France SAS' branded business to Aerocid of France for a consideration of euro7 million.

These were non-core assets for the Zydus group and were originally acquired from Alpharma of France in 2003 for euro3.7 million. The products are a combination of mature prescription and OTC products.

Over the last two years, Zydus Cadila has made progress in establishing the generics business in France following its entry into the market in 2004.

The group's formulation and manufacturing facilities at Moraiya and API manufacturing facility at Dabhasa have been approved by AFFSAPS, the French regulatory agency, thus clearing the way for generics to be manufactured in India. This is likely to bring in significant cost advantage to the group's business operations.

In 2005-06, Zydus France had launched three blockbuster products, Simvastatin in the cardiovascular segment, Omeprazole in the gastrointestinal segment and Sertaline in CNS segment.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group

BS Corporate Bureau in Mumbai
Source: