Pfizer Inc. (PFE: Quote) and Mylan Inc. (MYL: Quote) announced that they have signed a definitive agreement to establish an exclusive long-term strategic collaboration to develop, manufacture, distribute and market generic drugs in Japan.
As per the terms of the agreement, Pfizer's responsibilities primarily consist of the commercialization of the combined generics portfolio, managing a combined marketing and sales effort using its strong brand reputation and exceptional track record of bringing new products to the market.
Mylan's responsibilities primarily consist of managing operations, including research and development and manufacturing, building upon the company's strong global reputation for development of difficult to formulate products, quality manufacturing, supply chain reliability and service excellence.
The collaboration between Pfizer and Mylan will include a portfolio of more than 350 marketed products across a broad range of therapeutic categories, as well as more than 125 additional products in development. Products included in the collaboration are expected to be sold under the strong Pfizer brand with joint labeling.
As per the agreement, Pfizer and Mylan will each continue to operate independent entities in Japan, but will collaborate on current and future generic products, sharing the costs and profits resulting from the collaboration. The transaction remains subject to the satisfaction of certain closing conditions. The company said that the transaction terms remain confidential.
Japan is the second-largest pharmaceutical market in the world, behind the U.S., and the sixth largest generic retail prescription market worldwide, with sales of approximately $5.2 billion in 2011, according to the IMS Healthcare, Market Prognosis, 2012.
The company said that the Japanese government intends to grow the current volume of generic utilization from approximately 24 percent to 30 percent by the end of 2012.
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by RTT Staff Writer
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