Strides-Aspen in supply pact with GlaxoSmithKline

Bangalore: Strides Arcolab Ltd’s joint venture with South Africa’s Aspen Pharmacare has struck a global licensing and supply agreement with GlaxoSmithKline.

The deal will take 1,200 branded products of Strides, Aspen and their 50:50 venture, Onco Therapeutics Ltd, to 95 emerging markets; GSK gets access to new, low-cost products and a push into these markets, according to releases from Strides and GSK.

The pact was inked through the eight-month-old OTL, the Strides’ Vice-Chairman and CEO, Mr Arun Kumar, said. The first set of products would be launched in 2010.

OTL will license intellectual property and supply finished dosage forms. It will receive intellectual property-development costs and share profits from sales.

GSK would source, register and distribute and market them. Strides keeps the Indian market, and Aspen the sub-Saharan regions.

GSK termed it a ‘transformational agreement’ that enlarges and drives its portfolio in these markets.

Mr Arun Kumar said it was early to gauge the revenue impact; “The deal reflects the value created out of the joint venture (with Aspen). OTL’s robust pipeline augurs well for future growth.”