Monday, April 11, 2011

SUN PHARMA JV WITH MERCK - ORBIT SHIFTING AND TREND SETTER

Sun’s JV with Merck has much wider implications and the deal is a trend setter for the Indian pharmaceutical Industry. The deal has probably triggered the evolution of Indian pharma industry from generic to innovation driven.  The next ones likely to follow suit are Piramal life sciences, Perlecan Pharma, (Dr. Reddy), Wockhardt Life Sciences, Glenmark and Ranbaxy Life Science Research.

The benefits of the deal from the perspective of Merck are not many, but certainly much more meaningful for Sun. Merck’s association in the JV not only grants credibility to Sun’s research efforts, but also would give Sun important lessons in pursuing innovative R&D.  Sun would benefit out of Merck’s expertise in executing clinical trials (design, managing) and also commercialization of these patented drugs.  

Commercializing drugs generated out of an R&D base in high cost destinations have disrupted commercial viability of these drugs in emerging markets. This JV gives Merck perspective, m access to a low cost research base, which would make R&D efforts economically viable and affordable in the emerging markets.