Sun Pharma Industries Ltd. announced on August 16 that it has entered into an agreement with China Medical System Holdings to develop and commercialize seven generic products in mainland China.
The company in its filing stated, “Sun Pharma” and includes its subsidiaries and/or associate companies) today announced that one of its wholly owned subsidiaries has granted an exclusive license to a subsidiary of China Medical System Holdings Ltd. (CMS) to develop and commercialize seven generic products in Mainland China.
The collaboration with CMS now covers eight generic products including the seven products referred above.
The total addressable market size for all these eight products is about $1bn (as per recent IQVIA data) in Mainland China.
The initial term of the agreement shall be 20 years from the first commercial sale of the respective products in Mainland China and may be extended for additional three years’ as per mutual agreement of the two parties.
“This collaboration gives us entry into the Chinese generic pharmaceutical market. We see lot of potential in China for both, our generics and speciality portfolio. With more than 65% generics penetration, China represents a significant opportunity for generic pharmaceutical companies,” said Dilip Shanghvi, Managing Director, Sun Pharma.
In June 2019, Sun Pharma had announced collaboration with CMS on two speciality products, Tildrakizumab and Cyclosporine A 0.09% (CsA) eye drops for the Greater China market.
Sun Pharmaceuticals Industries Ltd ended at Rs425.40 up by Rs10.65 or 2.57% from its previous closing of Rs414.75 on the BSE.
The scrip opened at Rs425.40 and touched a high and low of Rs425.40 and Rs425.40 respectively. A total of 55,123 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs99,512.42cr. – IIFL