Dr Reddy's Laboratories on Thursday said it will form a joint venture with Fujifilm Corporation to develop, manufacture and market generic drugs in Japan.
The two companies have signed a Memorandum of Understanding (MOU) to this effect and a definitive agreement will be signed during the course of the calendar year, Dr Reddy's Laboratories (DRL) said in a statement.
The new joint venture will have 51 per cent stake owned by Fujifilm and 49 per cent stake owned by DRL, it added. Commenting on the development, Dr Reddy's Laboratories Vice-Chairman and CEO G V Prasad said, "We are very excited to partner with Fujifilm Corporation, a highly reputed Japanese company and a leading global brand, to bring world-class, high quality generic drugs to the people of Japan."
The joint venture intends to launch its first product in Japan in the next three to four years. It also
plans to design products that fit the specific requirements of the Japanese market, aiming to deliver reliable, high quality generic drugs enabling the growth of generic drug market in Japan.
"We are confident that Fujifilm's advanced R&D capabilities, quality systems and market know-how backed by DRL's cost competitive, high-quality generic drug development and manufacturing and experience as a major global generics player will help the JV establish a strong presence in the Japanese pharmaceutical market," Prasad added.
Commenting on the partnership Fujifilm Corporation President and CEO Shigetaka Komori said, "With the execution of the MoU with Dr Reddy's Laboratories Ltd, Fujifilm will have excellent capability in developing and manufacturing across active pharmaceutical ingredients (API) and formulations of generic drugs".
Dr Reddy's Laboratories scrip was trading at Rs 1,580 per share in the afternoon trade on Bombay Stock Exchange (BSE), down 0.31 per cent from its previous close.