Drugmaker Strides Pharma Science Ltd is entering China by forming a joint venture with Sun Moral International Ltd, a wholly-owned unit of Chinese firm Sihuan Pharmaceutical Holdings Group Ltd.
Strides Pharma Science’s subsidiary Strides Pharma Global Pte, Singapore and Sun Moral International will set up the JV based in Hong Kong as part of the transaction, the Indian drugmaker said in a stock-exchange filing.
Strides Pharma Science, formerly known as Strides Shasun Ltd, will own 49% in the JV, which will be called Sihuan Strides HK Ltd, it added.
Strides Pharma Science will license four products immediately to this JV. The products will be supplied from its manufacturing facilities in India and Singapore. The JV will also look to build its own facility in China, it added.
China is the second-largest pharmaceutical market in the world with a $137 billion market opportunity, according to a report by healthcare consulting firm IQVIA.
Strides Pharma Science said in a statement that recent regulatory developments in China has made way for fast track approvals of differentiated high quality generics that are approved in major regulated markets. Strides’ specialized basket of over 140 products is expected to benefit from JV which will be able to leverage it in China, it added.
“Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels,” said Che Fengsheng, chairman and executive director, Sihuan Pharmaceutical.
Sihuan claims to have a market share of 8.3% in the cardio-cerebral vascular market and strong presence in other therapeutic areas.
Incorporated in 1990, Strides Pharma Science has seven manufacturing facilities spread across three continents including five US Food and Drug Administration (FDA) approved facilities and two facilities for the emerging markets.
In another instance of an Indian drugmaker tapping into opportunities in China, Cipla formed a JV with Chinese firm Jiangsu Acebright Pharmaceutical Co. Ltd to make a fresh push into the neighbouring country.