DSM Anti-Infectives joins hands with Arch Pharmalabs
Aashruti Kak – Mumbai
DSM Anti-Infectives has entered into a manufacturing agreement with Mumbai-based Arch Pharmalabs, a pharmaceutical major operating in the API and intermediaries business for manufacturing of generic APIs. The company will leverage its world class innovation expertise to develop non infringing novel processes for various molecules. The company will then transfer these molecules to Arch Pharmalabs for commercial development.
Under this agreement, DSM will jointly develop non infringing process for generic molecules with Arch Pharmalabs and will utilise the Arch’s manufacturing platform to cater to the growing generic market demand. This agreement will further strengthen DSM’s focus in India and will help the company utilise the strong global market access to commercialise their generic API portfolio to both regulated and non regulated markets. The generics portfolio of innovation molecules will contribute to the $ 1 billion innovation products sales target of DSM by 2010. DSM will keep on adding new molecules to its generic portfolio and will adopt the technology sharing route with its Indian partners for commercialisation.
Commenting on the partnership, Hans Van Nistelrooij, Vice-President, DSM said, “This partnership is a logical step in our strategy. We focus mostly on life sciences and material sciences. DSM is known for its superior and environment friendly innovative products across the pharmaceutical industry. To make the diversification of our API portfolio quicker and to be close to the fastest growing generic drug markets in the world, DSM has adopted the partnership route for commercialisation of its new venture into generic APIs. The manufacturing agreement with Arch Pharmalabs will enable us to further strengthen our innovation focus in India.” He further said that the tie up with Arch was because of its scale up and manufacturing capabilities. Through this partnership, DSM will get technological and global access to customers and will create a more balanced company. Although DSM has been in India since late 1980s, its partnership with Arch is the first of its kind Ajit Kamath, Chairman and Managing Director, Arch Pharmalabs said, “DSM has been Arch’s anchor customer from day one and the relationship has now evolved into a strategic partnership. We are very pleased that DSM has placed it’s faith in Arch as a manufacturing partner for its non-traditional product range employing proprietary and path breaking technology. We expect the alliance to deliver a range of products in varied therapeutic segments and take a leadership position based on cost and market reach.” According to Kamath, DSM will be bringing two processes in the market —environment friendly processes and cost-effective processes. Hence, the delta over present processes was far too lucrative.
The deal is a real partnership in profit sharing and cost sharing and will bring best positions of both companies to the table. The first products will be produced by Arch in its facility early next year with the help of DSM’s technology, and the main product focus will be on statins, prils and immunosupressants. The DMF filings will be done by DSM only. “We are looking to surf global markets as well with this partnership,” said Nistelrooij. The partnership will also help Arch in achieving its goal to sail past the 1,000 crore mark in the CRAMS segment. “75 percent of our goal will be coming from this activity only,” said Kamath. DSM is sealing other alliances in the country as well, expanding other activities in the country. It has created its second company, DSM India, which is being handled by Vice-President N V Ramanan. As statins are slowly going off patent soon, DSM wants to move from anti-infectives to a specialty stature, but only keeping it restricted to API’s at the moment. It is also mainly looking at China for certain intermediates. But India seemed to be the best choice, as in terms of quality and FDA systems, it is more advanced than China. The strategic partnership between DSM and Arch is synergistic and will further the company’s presence in the emerging pharmaceutical markets having a distinguished product portfolio of drugs. DSM’s foray in to the new therapeutics molecules will provide the customers access to technologically superior, environment friendly, easily available and a sustainable portfolio of products from a reliable and compliant supplier like DSM.