Company Watch

Strides Arcolab JV enters in-licensing deal with GSK

Our News Bureau - Mumbai

Strides Arcolab's joint venture (JV) with Onco Therapies Ltd (OTL), recently signed a licensing and supply agreement with GlaxoSmithKline (GSK). The JV was recently listed on the Indian Stock Exchange. Simultaneously, its JV in Africa, Aspen Pharmacare Holdings also listed on the South African Stock Exchange. According to a company release, OTL will license intellectual property and supply finished dosage form pharmaceuticals to GSK. The first of the products commercialised under this arrangement is expected to be launched in 2010.

The licensing and supply agreement is for 95 emerging market countries excluding Sub-Saharan Africa and India. OTL will recover intellectual property development costs from GSK in addition to sharing profits with GSK from the commercialisation of the products.

Arun Kumar, Vice Chairman and Chief Executive of Strides said, "This deal with GSK reflects the value which has been created out of the JV between Strides and Aspen. Aspen is an important partner of Strides with collaborations on a global basis. OTL has a robust product pipeline which augurs well for the future growth of this business. The deal is also testament to the quality and capability of OTL's development and production."

Stephen Saad, Aspen Group Chef Executive said, "We see this as a great opportunity to extend the worldwide reach of the OTL business benefiting from GSK's excellent strength in branding and marketing. GSK will achieve effective distribution for products in many countries which OTL is presently unable to reach. The OTL JV has provided GSK with an attractive product offering and I would like to commend the significant contribution from Strides in this regard. This deal further extends the mutually beneficial relationship between Aspen and Strides."