Sanofi Torrent India Ltd, the equal stake venture between the Rs 1,100 crore Torrent group and the $8 billion Sanofi Pharma of France, will have a Rs 5 crore equity base and will market Torrent Pharma's cardiovascular, neurological, thrombosis, rheumatological, gynaecological and dermatological products.
Under the agreement, Torrent will make products at its two plants near Ahmedabad and sell it to Sanofi Torrent for a fee. Only the injectible form of the cardiovascular, Cordarone, will be imported from France.
Torrent will also transfer some of its products to the venture like RbFlex, an anti-thrombotic, Valparin, an anti-epileptic, and Tidomet, an anti-Parkinson's drug and has entered into a non-compete clause with Sanofi-Torrent for these products , said deputy managing director, K K Sureka.
Sureka said Torrent Pharma will also be producing some of Sanofi's major products like Cordarone, a cardiovascular, Tyklid, an anti-thrombotic.
The marketing will be done by a 40 member exclusive team and they will be aided by Torrent's field force. Torrent will charge a separate fee for aiding the marketing effort.
Torrent could also enter into an agreement with Sanofi for branded generic drugs later, said Sureka.
Both Sanofi and Torrent will charge a royalty for their products and the joint venture company will have the first right of refusal for any new products.
Depending on the returns and the speed of registrations, Sanofi would make a $50 million investment in manufacturing facilities for Sanofi Torrent later, said Gordon D Proctor, Sanofi Torrent vice president. Chaitanya Dutt, chairman of Sanofi Torrent said the company expected a Rs 32 crore turnover in the first year of operations.
Sanofi Pharma is one of the major research driven firms and spent $ 600 million on R&D in 1996. The company has 30 new molecules ready for clinical trials, said Proctor. Torrent Pharma, too has set up a R&D centre in Ahmedabad and will spend Rs 45 crore on R&D this year, said Dutt.
The pharmaceutical business of Torrent Exports, a company wholly owned by the Torrent group promoters, has been merged with Torrent Pharma.
K K Sureka, managing director of Torrent Pharma, said Torrent Exports' investments related to pharma sector, will also be transferred to Torrent Pharma.
The promoters hold 74 per cent of Torrent Pharma while the balance is with the public. The pharma business of Torrent Exports was transferred on Oct 1, 1996.
