Strides Pharma Science Limited has announced entry into Chinese market through a Joint Venture between its Singapore-based step down subsidiary Strides Pharma Global Pte (SPG) and Sun Moral International (HK) Limited, a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd (Sihuan), one of China’s leading pharmaceutical companies.
China is the second-largest pharmaceutical market with a $137 billion market opportunity. Sihuan has a market share of 8.3 per cent in the cardio-cerebral vascular market and presence in other therapeutic areas.
“We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China,” said Strides group CEO and managing director, Arun Kumar.
Che Fengsheng, chairman and executive director, Sihuan, said, “Sihuan will give full scope to the JV in sales and marketing strategies and continue to expand the market rapidly through our marketing channels.”
The development comes in the backdrop of the recent regulatory developments in China which has enabled fast track approvals of differentiated high-quality generics approved in key regulated markets. Strides’ specialised basket of over 140 products qualifies for the programme, and this JV will be able to leverage it in China.
The company will immediately license four high potential products to the JV which will add significant value to Sihuan’s existing portfolio. Strides will supply these products to the JV from its manufacturing facilities at India and Singapore. The JV will explore setting up local manufacturing in China in due course.
Both the companies will set up a new JV company based in Hong Kong under the name Sihuan Strides HK Ltd. SPG will own a 49 per cent stake in this company. Strides will receive a licensing fee for each product in-licensed to the JV. Sihuan will leverage its salesforce with over 4,000 members and distributors of over 3000 across Mainland China to market the products.