Alpharma Inc., has announced that it has entered into an agreement with Shasun Chemicals & Drugs Limited (“Shasun”), under which the Chennai-based global pharmaceutical company will develop, manufacture and supply generic prescription products and active pharmaceutical ingredients for exclusive sale by Alpharma. This agreement is expected to significantly accelerate the expansion of Alpharma’s global generic product pipeline in line with company strategy.
Under the agreement, Shasun will develop active pharmaceutical ingredients and final formulations, and manufacture finished products for exclusive sale by Alpharma worldwide. Alpharma will take responsibility for the regulatory filings and will own all intangible assets developed by the partnership. During the period of exclusive sales by Alpharma, the two companies will share profits and Alpharma will reimburse Shasun for certain development and manufacturing costs.
Ten products with global brand sales exceeding $20 billion are initially planned under this agreement, but additional products may be added over time. Product launches are scheduled to begin in 2007. The agreement with Shasun follows a similar development and manufacturing arrangement with Chennai-based Orchid Chemicals & Pharmaceuticals, Ltd. announced in February.
Shasun, incorporated in 1976 and headquartered in Chennai, India is primarily a manufacturer of APIs, intermediates and excipients. It is also engaged in contract research and contract manufacturing for major global pharmaceutical companies, and is the world’s largest producer of ibuprofen (bulk drug) and supplies about 15% of the U.S market requirements of the drug. In addition, the company is a leading company in the anti-inflammatory, anti- ulcerative and anesthetic segments.
