Strides / Aspen JV in-licensing deal with GSK

Onco Therapies Limited (“OTL”), the joint venture between Strides Arcolab Limited (“Strides”), listed on the Indian Stock Exchange and Aspen Pharmacare Holdings Limited (“Aspen”), listed on the South African Stock Exchange, today concluded a licensing and supply agreement with leading multinational pharmaceutical corporation, GlaxoSmithKline (“GSK”).  In terms of the agreement OTL will license intellectual property and supply finished dosage form pharmaceuticals to GSK.

The licensing and supply agreement is for 95 emerging market countries excluding Sub-saharan Africa and India.  OTL will recover intellectual property development costs from GSK in addition to sharing profits with GSK from the commercialization of the products.

Arun Kumar, Vice Chairman and Chief Executive of Strides said “This deal with GSK reflects the value which has been created out of the joint venture between Strides and Aspen.  Aspen is an important partner of Strides with collaborations on a global basis.  OTL has a robust product pipeline which augurs well for the future growth of this business.  The deal is also testament to the quality and capability of OTL’s development and production.”

Stephen Saad, Aspen Group Chef Executive said “We see this as a great opportunity to extend the worldwide reach of the OTL business benefiting from GSK’s excellent strength in branding and marketing.  GSK will achieve effective distribution for products in many countries which OTL is presently unable to reach.  The OTL joint venture has provided GSK with an attractive product offering and I would like to commend the significant contribution from Strides in this regard.  This deal further extends the mutually beneficial relationship between Aspen and Strides.”

The first of the products commercialised under this arrangement is expected to be launched in 2010.

Sourced From: Corporate Voice|Weber Shandwick