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Rediff News  All News  » Business » 'Ranbaxy will gain from Orchid's R&D'

'Ranbaxy will gain from Orchid's R&D'

April 23, 2008 11:28 IST

Ranbaxy Laboratories on Tuesday announced a business alliance with Orchid Chemicals and Pharmaceuticals across multiple geographies and therapies, for finished dosage formulations and bulk drugs.

C B Rao, Orchid's Deputy Managing Director, spoke to PB Jayakumar on the partnership and the recent share purchases made by Ranbaxy through Solrex.

Which are the areas of co-operation identified for the strategic alliance with Ranbaxy? Is this on an exclusive basis?

As we have announced on Tuesday, this agreement will cover dosage forms and active pharmaceutical ingredients, in different therapeutic groups, manufactured by us.

We have signed a broader business alliance framework agreement and in the coming weeks both companies will jointly explore and identify products, markets and the related business benefit impact.

Have you identified any specific geographies, or products, for which Ranbaxy will be your marketing partner?

We have not finalised any specific geographies or products as of now. There are many markets where we are not present. Ranbaxy's reach and presence will help us to tap newer geographies and products.

In the past three years, Orchid entered into alliances with global companies such as Actavis, Alpharma, Stada and Mayne Pharma to market various products in different markets. What will happen to these alliances?

All these alliances will continue according to the agreements. Our existing alliances with the companies that you mentioned are for specific geographies and products.

Whichever alliance is exclusive will continue to be exclusive. Our new alliance will explore new products and markets without disturbing the existing alliances.

How will this alliance benefit your US business, as Ranbaxy has considerable strength in the US?

We have received 25 approvals out of about 47 abbreviated new drug applications (ANDAs) filed with the US Food and Drug Administration. It is an ongoing process and we will add more products in the coming years.

Our existing tie-ups do not cover all the products in our basket and Ranbaxy's marketing strength will help us to generate more business from not only the US, but also from other markets. Ranbaxy, too, could benefit from our future product pipeline.

Will Ranbaxy raise its stake further in Orchid to gain management control? Do you have any understanding on this?

I would not like to comment. The strategic alliance agreement that we signed on Tuesday with Ranbaxy is independent of any such commitment related to management control and is a pure arm's length, independent strategic business alliance.

P B Jayakumar in Mumbai