Strides Pharma Science Ltd. has announced that its step down subsidiary, Strides Pharma Global Pte, Singapore (SPG) has entered into a Joint Venture (JV) with Sun Moral International (HK) Ltd., a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd. (Sihuan), one of China’s leading pharmaceutical companies. The JV, Sihuan Strides HK Ltd., will be 49% owned by SPG, while the Sun Moral International (HK) will own the balance 51%.
The JV fast tracks Strides’ entry into China, the second-largest pharmaceutical market in the world offering a $137-bn market opportunity. Sihuan is one of the leading pharmaceutical companies in China’s prescription drug market with a market share of 8.3% in the cardio-cerebral vascular market and strong positioning in other therapeutic areas.
The recent regulatory developments in China have enabled fast track approvals of differentiated high-quality generics approved in key regulated markets. “Strides’ specialised basket of 140+ products qualifies for the programme, and this JV will be able to leverage it in China,” Strides said in a official statement.
Strides will immediately license four high potential products to the JV, which will add significant value to Sihuan’s existing portfolio. In return, Strides will receive a licensing fee for each product in-licensed to the JV. Strides will supply these products to the JV from its manufacturing facilities at India and Singapore. The JV will explore setting up local manufacturing in China in due course.
“The cooperation between Sihuan Pharmaceutical and Strides is a powerful collaboration. Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels,” Dr. Che Fengsheng, Chairman and Executive Director, Sihuan, remarked.
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