Sun Pharma & Merck JV

·          Sun Pharma (Sun) and Merck Inc have formed a JV to develop, manufacture and commercialize new combinations and formulations of innovative branded generics for the emerging markets

·          As per the agreement, the JV will make use of Sun Pharma Advanced Research Company Ltd's (SPARC, SPADV IN, NR) NDDS platform technologies (dry powder inhalers, injectable depot, GRID, Wrap Matrix-details below), Sun would be responsible for manufacturing/developing the product while Merck would be responsible for clinical expertise and marketing of the products in the emerging markets.

·          The JV would be managed by both Sun and Merck with equal representation of executives.

·          Businesses in India for both the companies remain independent of the deal. NCE pipeline of SPARC has not been included in the JV at this point.

·          The JV will use existing infrastructure of both the partners-Sun will manufacture the products on behalf of the JV while Merck will market the products on behalf of the JV.

·          SPARC to receive technology income on transfer of the technology platform to the JV and would also be eligible for milestones and royalty from the sale of the products.

·          The JV is yet to decide on the formation, financial parameters, product/therapy/country selection which will be done in due course of time

·          Focus of the JV will be on innovative branded generics. Sun on the conference call indicated that it has less than 12 such products already launched in India which the JV may select from in the initial years while new product identification and development would take time (beyond 2013).