Bayer HealthCare, part of Bayer AG with annual sales of more than EUR 15.9 billion, and Ahmedabad-based pharma player Zydus Cadila have signed an agreement to set up the joint venture company Bayer Zydus Pharma for the sales and marketing of pharmaceutical products in India. Both will hold 50% stake in Bayer Zydus Pharma, headquartered in Mumbai, and be equally represented on its management board.
The new venture will operate in segments of women’s healthcare, metabolic disorders, diagnostic imaging, cardiovascular diseases, anti-diabetic treatments and oncology.
Bayer Zydus Pharma will start operations with Bayer HealthCare’s Pharmaceutical Division contributing its existing sales and marketing business in India to the new company, and Zydus contributing its women’s healthcare products, diagnostic imaging business and other products.
“We have always believed in partnering growth, have keenly explored new opportunities to collaborate and look at synergies in the marketplace. We are happy to collaborate with Bayer HealthCare and jointly leverage strengths, looks at future possibilities and creates a common platform to pool in expertise,” Pankaj R. Patel, Chairman and Managing Director of Zydus Cadila, said.
“With this step, Bayer HealthCare aims to significantly accelerate its capabilities to better serve the fast growing Indian market. We believe that the joint venture between Bayer HealthCare and Zydus Cadila will provide a win-win situation for both partners,” Jörg Reinhardt, CEO of Bayer HealthCare AG, said.
Zydus Cadila has recently completed the acquisition of South Africa-based Simayla Pharmaceuticals. Zydus, which has acquired 70% stake in Simayla in 2008, bought the remaining 30% stake.
Zydus Cadila had acquired Alpharma France, the French affiliate of one of the world’s largest generic companies in 2003, Nippon Universal Pharmaceuticals Ltd of Japan and Quimica e Farmaceutica Nikkho do Brasil Ltd of Brazil in 2007, and Laboratorios Combix of Spain in 2008. Besides, the company has entered into joint venture agreement with US-based vaccine maker Novavax Inc to develop, manufacture and market vaccines, pharmaceuticals and diagnostic products in India.