Merck & Co., Inc., and Sun Pharma Establish Joint Venture to Develop and Commercialize Novel Formulations and Combinations of Medicines in Emerging Markets
April 11, 2011 7:01 am ET
Joint Venture to Apply Proprietary Technologies to Develop Medicines Designed to Enhance Convenience and Improve Compliance
Merck & Co., Inc., (NYSE:MRK), a global health care leader, known as MSD
outside the United States and Canada, and Sun Pharmaceutical Industries
Ltd., (“Sun Pharma”) a leading Indian multinational pharmaceutical
company, today announced the creation of a joint venture to develop,
manufacture and commercialize new combinations and formulations of
innovative, branded generics in the Emerging Markets.
“Merck’s Emerging Markets strategy is driven by our overarching focus on
applying innovation across our business from introducing novel compounds
to broadening our focus on innovative branded generics,” said Kevin Ali,
president, Emerging Markets, Merck/MSD. “By combining forces with Sun
Pharma, we are complementing our innovative product portfolio with a
solid foundation for addressing the diverse needs of patients,
physicians and governments across the Emerging Markets.”
The partnership combines Sun Pharma’s proven track record of leadership
and expertise in rapid, innovative product development using Sun Pharma
Advanced Research Company Ltd’s (“SPARC”) proprietary platform
technologies, and Sun Pharma’s world-class manufacturing network with
Merck’s clinical development and registration expertise and a broad,
geographic commercial footprint. The companies said that they will focus
on ‘innovative branded generics,’ that bring together combinations of
medicines using platform delivery technologies designed to enhance
convenience for patients in Emerging Markets. The joint venture will be
structured through Merck and Sun Pharma’s respective subsidiaries.
Financial details of the joint venture were not disclosed.
“This joint venture reinforces our strategy of partnering to launch
products using our highly innovative delivery technologies around the
world,” said Dilip S. Shanghvi, chairman and managing director, Sun
Pharmaceutical Industries Ltd. “Merck has an unrivalled reputation as a
world leading, innovative, research-driven pharmaceutical company. We’re
proud to be associated with them and look forward to working together.”
Experts estimate that during the coming decade, the Emerging Markets are
expected to drive 90 percent of the world’s pharmaceutical growth, with
75 percent of that growth coming from branded generics. In these
markets, the growing burden of chronic disease, such as cardiovascular
disease, diabetes and hepatitis, along with an increasing population and
economic prosperity, is leading to an increased demand for branded
“Merck has a proud legacy of developing innovative medicines and
vaccines with proven ability to impact global human health,” said Ali.
“We are making good progress executing on our Emerging Markets growth
strategy by establishing novel partnerships and strategic alliances.
This joint venture helps position us for leadership in the fastest
The collaboration between MSD and Sun Pharma will be managed by a Joint
Board and leadership team, consisting of members of senior management
from both companies.
About Sun Pharmaceutical Industries Ltd.
Established in 1983, listed since 1994 and headquartered in India, Sun
Pharmaceutical Industries Ltd. (Reuters: SUN.BO, Bloomberg: SUNP IN,
NSE: SUNPHARMA, BSE: 524715) is an international, integrated, specialty
pharmaceutical company. The company manufactures and markets a large
number of pharmaceutical formulations as branded and incrementally
innovative generics in India, the United States and across several
Emerging Markets. In India, it is the leader across the psychiatry,
neurology, cardiology, diabetology, gastroenterology, ophthalmology and
orthopedic therapy areas. Additionally, the company possesses strong
skills in product development, process chemistry, and the manufacturing
of complex active pharmaceutical ingredients (APIs) as well as dosage
formulations. More information can be found at www.sunpharma.com.
About Sun Pharma Advanced Research Company Ltd
SPARC Ltd. is a listed, independent R&D company that discovers and
develops new molecules and novel drug delivery systems, with a
220+-strong team of scientists and four R&D centers.
SPARC’s delivery system projects focus on developing platform
technologies that enhance patient convenience or compliance, such as
oral (gastro retentive innovative device, wrap matrix technology),
injectables (nanoparticulate formulations, biodegradable depots), dry
powder inhalers, ophthalmic technologies (swollen micelle and gel free
reservoir). Some products based on these technologies are marketed in
About Merck & Co., Inc.
Today’s Merck is a global healthcare leader working to help the world be
well. Merck is known as MSD outside the United States and Canada.
Through our prescription medicines, vaccines, biologic therapies, and
consumer care and animal health products, we work with customers and
operate in more than 140 countries to deliver innovative health
solutions. We also demonstrate our commitment to increasing access to
healthcare through far-reaching policies, programs and partnerships. For
more information, visit www.merck.com.
This news release includes “forward-looking statements” within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995. Such statements may include,
but are not limited to, statements about the benefits of the merger
between Merck and Schering-Plough, including future financial and
operating results, the combined company’s plans, objectives,
expectations and intentions and other statements that are not historical
facts. Such statements are based upon the current beliefs and
expectations of Merck’s management and are subject to significant risks
and uncertainties. Actual results may differ from those set forth in the
The following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: the
possibility that the expected synergies from the merger of Merck and
Schering-Plough will not be realized, or will not be realized within the
expected time period; the impact of pharmaceutical industry regulation
and healthcare legislation; the risk that the businesses will not be
integrated successfully; disruption from the merger making it more
difficult to maintain business and operational relationships; Merck’s
ability to accurately predict future market conditions; dependence on
the effectiveness of Merck’s patents and other protections for
innovative products; the risk of new and changing regulation and health
policies in the United States and internationally and the exposure to
litigation and/or regulatory actions.
Merck undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise. Additional factors that could cause results to differ
materially from those described in the forward-looking statements can be
found in Merck’s 2010 Annual Report on Form 10-K and the company’s other
filings with the Securities and Exchange Commission (SEC) available at
the SEC’s Internet site (www.sec.gov).
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Merck & Co., Inc.
Ian R. McConnell, 908-423-3046
or Gail S. Thornton, 908-423-3012
or Jyotsna Ghoshal, +91 98 1019 4171
Joe Romanelli, 908-423-5088
or Carol Ferguson, 908-423-4465
Sun Pharmaceutical Industries Ltd.
Media and Investors:
Uday Baldota, + 91 98 6701 0529
or Mira Desai, + 91 98219 23797