Cadila Healthcare and Bayer HealthCare, a unit of Bayer AG that has presence in healthcare, nutrition and high-tech materials, on Friday announced to set up a joint venture company 'Bayer Zydus Pharma' to market products locally, including women's healthcare, metabolic disorders and oncology. Each party will hold 50% of the shares of Bayer Zydus Pharma, headquartered in Mumbai, and be equally represented on its management board.
"We believe that the joint venture between Bayer HealthCare and Zydus Cadila will provide a win-win situation for both partners," said Jorg Reinhardt, chief executive officer, Bayer HealthCare AG in a press release. "We expect to leverage the strength of Bayer Zydus Pharma such as the optimised product portfolio and the distribution capabilities to enhance the launch of new products and the sales of existing brands," he said.
Bayer Zydus Pharma will start operations with Bayer HealthCare's pharmaceutical division contributing its existing sales and marketing business in India to the new company and Zydus contributing its women's healthcare products, diagnostic imaging business and other products.
"The joint venture would help Cadila leverage on strengths and explore the possibility of creating a common platform and build a pool of expertise," said Pankaj Patel, chairman and managing directo, Cadila Healthcare.
The joint venture is also intended to focus on the sales and marketing of future patented pipeline pharmaceutical products.