Cipla inks pact with Acebright Group to build respiratory biz in China

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Drug maker Cipla on July 16 said it had entered into an agreement with Shanghai-based Jiangsu Acebright Pharmaceuticals to set-up a joint venture company in the People’s Republic of China for local manufacture of respiratory products.

As per the agreement, the JV will become a subsidiary of Cipla. Cipla's wholly-owned subsidiary Cipla EU will hold 80 percent stake and Acebright will retain the balance for a combined investment of $30 million.

“While our core home markets remain our current growth anchors, we see China as a crucial part of our future roadmap," said Umang Vohra, MD and CEO of Cipla.

"In May, we inaugurated our office in Shanghai. We have a long-standing relationship with Acebright, and this partnership to build a manufacturing facility in China is a significant step for us. We are keen to take our well-established expertise in the respiratory segment to patients in China," Vohra added.

Cipla said it will simultaneously explore various routes to build a portfolio of products in other therapeutic segments such as oncology in China.

Moneycontrol reported in 2017 about Cipla's plan to enter China and its focus on the respiratory segment.

Cipla’s entry into China’s branded respiratory segment is in line with its pursuit to build a global respiratory franchise. The segment alone contributed about one-fifth to Cipla’s sales of Rs 16,362 crore in FY19.

The respiratory segment includes range of products including pills, nasal sprays and inhalers to treat asthma, Chronic Obstructive Pulmonary Disease (COPD) and Allergic Rhinitis (AR), among others.

In China, respiratory diseases are the second largest cause of death. It is estimated that of the 100 million Chinese — who are thought to have asthma or chronic obstructive pulmonary disease — only 30 percent have been diagnosed and only five million are receiving any kind of treatment.

At present, international pharmaceutical firms such as GlaxoSmithKline, AstraZeneca, Boehringer Ingelheim, Merck and Novartis dominate the Chinese respiratory market.

“We have a long-standing partnership of more than 20 years with Cipla, which shares our vision and approach towards patients,” said Shengping Xu, Chairman of Acebright Group.

Acebright, a subsidiary of the Shanghai Acebright Pharmaceuticals Group, was established in 1996. It is mainly engaged in anti-viral, oncology products and vitamin ingredients.

As a main supplier of anti-viral and oncology APIs for the global market, Acebright Group also offers finished dosage products to meet the needs of HIV/AIDS and cancer patients in the Chinese market. Acebright Group is also an important vitamin manufacturer, having its business and vitamin-based food and feed additive products in more than 70 countries and regions around the world.