AstraZeneca in generic drugs deal for emerging markets

AstraZeneca today struck a deal with an Indian generic medicine firm to try to increase its activities in fast-growing emerging markets.

Torrent Pharmaceuticals will supply Astra with generic medicines — drugs that are copies of patented medicines — which Astra will brand and market in countries with fast-growing economies, probably including China, Mexico, Brazil, Russia and in Eastern Europe.

Astra, which is facing several blockbuster drugs coming out of patent protection in the next few years, will in some cases rebrand big-selling medicines developed by rivals with brand names of its own.

Astra hopes the deal will mean more doctors prescribe Astra-Torrent medicines they recognise and trust in countries where quality of drugs can be dubious.

Other companies have struck similar deals to open emerging markets, which are seen as the big growth area for global medicine sales. Cheaper branded generics provide a key way in to these new markets.

The deal will initially cover 18 products in nine countries and is expected to grow over time. Neither financial terms nor the countries where Astra and Torrent will operate were disclosed.

Emerging markets are forecast to contribute about 70% of pharmaceutical industry growth in the next five years and branded generics represent approximately half by value in these markets, AstraZeneca said.

The company is thought to be pursuing deals with other generic manufacturers.