The new entity, to be named Bayer Zydus Pharma and headquartered in Mumbai, will market the firms’ respective portfolios of drugs, with a particular focus on women’s healthcare and diagnostics imaging technologies.
Bayer, which will provide local marketing and sales capacity, will sell its Glucobay, Xarelto and Necavar franchises through the new unit while Zydus’ efforts will focus on its Euglim, Progynova and Ultravist lines
The formation on the new unit, which will employ around 600 people, better positions Bayer to serve Indian’s rapidly expanding market according to CEO Jorg Reinhardt.
“We expect to leverage on the strengths of the Joint Venture such as the optimized product portfolio and the distribution capabilities to enhance the launch of new products and the sales of existing brands.”
Zydus Chairman Pankaj Patel echoed these thoughts, telling the Wall Street Journal that the combination "leverages strengths, looks at future possibilities and creates a common platform to pool in expertise."
The two firms have worked together since 2006 when Bayer paid $19.5bn for fellow German firm Schering AG with which Zydus already had an established manufacturing and marketing contract.
The JV is also the second partnership that Ahmedabad-based Zydus has formed in the last six months, behind its deal with US-based Nycomed in September last year.
Zydus has similar partnership deals with other western pharmaceutical firms, with its partnerships Boehringer Ingelhem, Baxter and Genzyme being among the best examples.
Bayer, which is Germany’s largest pharmaceutical firm, has sought to expand its business in India which, at present, is dominated by pesticides produced by its crop science division.
Speaking to Reuters in March last year Alok Kanti, head of the German firm’s prescription drug division in Asia, said: “In India we are open to businesses to strengthen our position,” adding that the firm is “looking for the right opportunity.”