Dr. Reddy’s Laboratories Ltd (DRL) and Fujifilm Corporation on Monday said they have decided to terminate the MoU to enter into an exclusive partnership in the generic drugs business for the Japanese market and to establish a joint venture in Japan.
Though the Memorandum of Understanding for generic drugs has been cancelled, both the companies will explore partnerships in other related areas, said a statement issued by DRL.
DRL and Fujifilm signed a MoU on July 28, 2011 and the duo had conducted detailed studies on the establishment of a joint venture for developing and manufacturing generic drugs in Japan.
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However, as Fujifilm realigns its long-term growth strategy for the pharmaceutical business, both companies have come to a mutual agreement to terminate the MoU, the statement added.
GV Prasad, Chairman and CEO, DRL said, “Unfortunately, we will not be able to partner with Fujifilm specifically for generic formulations business in Japan. However, I want to reinforce our commitment towards a planned entry into Japan to bring affordable and innovative drugs to more patients worldwide.”
The two companies will continue to explore partnership/ alliance opportunities in other pharmaceutical businesses such as API (active pharmaceutical ingredient) development and manufacturing, contract research and development and marketing of super-generics, the release added.
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Takatoshi Ishikawa, Director Corporate Vice-president and General Manager of Pharmaceutical Products Division of Fujifilm said, in long-term, the Japanese company will be focusing more on priority fields such as new drugs in cancer field.
He said the company will also focus on more value-added super generic, and bio-related business by using core technologies, analysis technologies, original nanotechnology, and high reliability and high quality manufacturing technologies.
“Meanwhile, we will continue future collaboration with Dr. Reddy’s in other fields”, Mr. Ishikawa said.
DRL shares were quoted at Rs 2,118 apiece, up 1.21 per cent on BSE during afternoon trade.