Drug maker Ranbaxy Laboratories on Tuesday said the company and parent firm Daiichi Sankyo, are expanding their business in Mexico.
As part of the plan, the two companies will launch Daiichi Sankyo's Olmesartan Medoxomil, used to treat high blood pressure, in Mexico before the end of 2011.
"Daiichi Sankyo and Ranbaxy have agreed to expand the group's business in Mexico with the launch of Olmesartan Medoxomil," the two companies said in a joint statement. Commenting on the step, Ranbaxy Managing Director Arun Sawhney said, "Mexico is an important emerging market for us and Ranbaxy and Daiichi Sankyo will work together in providing innovative options and solutions to customers through a Hybrid Business Model."
Earlier, in 2009, both firms had announced that the portfolio of Daiichi Sankyo would be commercialised in Mexico through a marketing division within Ranbaxy Mexico SA de CV (RMEX), a subsidiary of Ranbaxy. Daiichi Sankyo Mexico SA de CV (DSMX), a newly established subsidiary of Daiichi Sankyo, and RMEX will leverage the group's hybrid business model in Mexico.
Ranbaxy's know how and cost advantages, offering both innovative and affordable, high quality generic medicines, would be utilised by the group's Mexican arms, it added.
Daiichi Sankyo President and CEO Joji Nakayama said, "We are determined to work with Ranbaxy to further serve diversifying medical needs in this strongly emerging market."
Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan's third largest drug maker bought a majority stake for Rs 22,000 crore.
With an estimated population of 107 million people, Mexico is the 14th largest pharmaceutical market in the world and is the second largest in Latin America. In 2010, the Mexico pharma market size was nearly USD 11.4 billion.
"Daiichi Sankyo and Ranbaxy will continue to reinforce their respective and consolidated business platforms over the longer term by further accelerating their global business coordination," the company said.
Under the hybrid business model adopted by the two firms, Ranbaxy primarily focuses on generic medicine research both for itself and its parent firm, while the new drug discovery programme will be taken up by Daiichi Sankyo.
Shares of Ranbaxy Laboratories were trading at Rs 565 on the Bombay Stock Exchange in the late afternoon on Tuesday, up 0.62% from their previous close.