Pfizer ties up with Aurobindo for generic drugs

04 March 2009

Drug maker Pfizer Inc has reached a licensing deal with Hyderabad-based generic drug maker Aurobindo Pharma Ltd in a move that may add at least $200 million (Rs1,034 crore) in annual sales to the world's largest maker of medicines and bolster its stake in the generics market.

Pfizer has entered into multiple agreements with the Aurobindo Pharma to sell generic medicines in the US and Europe, as part of expanding its 'established products business units' – an arm of the multinational drug firm which focuses on commercialisation of drugs whose market exclusivity and patents have expired.

Pfizer is buying the rights from Aurobindo to sell 75 generic drugs as pills and 12 as injectables. The agreement is the first of the partnerships Pfizer is seeking with generic drug makers to add $1 billion in revenue over four years from selling generic medicines.

The move is part of Pfizer's strategy to lower its dependence on brand name prescription medicines by increasing sales in over-the-counter pills, veterinary products and medicines that have lost patent protection. Pfizer has a 17-person generic unit called Greenstone Ltd that sells copies of the company's medicines. The deal with Aurobindo is the first time Pfizer will sell medicines discovered by other companies.

Under the agreement, Pfizer has acquired the right to sell 39 generic solid oral dose products in the US and 20 in Europe coupled with additional 11 products in France. These medicines cover a broad range of therapeutic areas including cardiovascular and central nervous system disorders.

Pfizer has also acquired the right to sell 12 sterile injectable products in the US and Europe. These medicines fall in the category of Antibiotics including Pencillins and Cephalosporins.