Mumbai: The world’s third largest off-patent drug maker, Mylan Inc., has formed a strategic alliance with Mumbai-based oral and injectable contraceptive maker Famy Care Ltd to enter the $3.3 billion (Rs13,860 crore) oral contraceptive market in the US.
The two companies will jointly file for approval to launch at least 22 new oral contraceptives with the US Food and Drug Administration (FDA).
Mylan has the right of first refusal for more oral contraceptive products developed by Famy Care and for certain additional markets, including Australia and Japan, where Mylan has a significant presence, the company said in a statement on its website.
Expanding portfolio: Robert?J.?Coury, Mylan vice-chairman and CEO. Photograph: Bloomberg
Mylan and Famy Care will invest almost equally in the product development and marketing partnership, and share the profits.
Though Mylan’s exact investment in the partnership was not disclosed, Famy Care has already invested around Rs100 crore for setting up a new manufacturing plant at a special economic zone in Ahmedabad, Gujarat, and for the development of these new products.
“Through our partnership with Famy Care, we have met another long-standing commitment by expanding our portfolio to create a women’s health care franchise for Mylan,” vice-chairman and chief executive Robert J. Coury said in the statement.
“We anticipate filing the oral contraceptives with the US Food and Drug Administration as early as the next few months and beginning to launch them in 2010.”
Famy Care is currently one of the largest suppliers of off-patent, or generic, contraceptive drugs in the world. Apart from winning significant business from the United Nations for international supply, the company directly sells these products in 50 countries. Famy Care’s female contraceptive drugs include the Mala-D range of birth control pills.
“We will be manufacturing and supplying the entire range of these contraceptive drug formulations, including pills and injections, from our new plant in Ahmedabad and also from the existing plants in Vapi and Daman for the US market,” said Ashuthosh Taparia, a director at Famy Care.
The Famy Care partnership is the second important deal for Mylan in India after it acquired a majority stake in Hyderabad-based Matrix Laboratories Ltd in 2006 for $736 million.
According to a person familiar with the development who did not want to be identified, Mylan may pick up a stake in Famy Care at a later stage. Taparia, however, said Mylan has no interest in acquiring equity in his company at present.