Astrazeneca extends branded generics capability with Torrent agreement

AstraZeneca today announced a license and supply agreement with Torrent Pharmaceuticals Ltd. Torrent will supply to AstraZeneca a portfolio of generic medicines for which Torrent already has licenses in a range of countries. Working in partnership with Torrent, AstraZeneca intends to brand and market these products in many of its emerging markets, where it already has a strong commercial footprint.

Under the agreement AstraZeneca will initially purchase from Torrent the licenses and market authorizations for 18 products in nine countries. The agreement allows the flexibility to add further products and new countries where AstraZeneca sees opportunities for growth. Financial terms were not disclosed.

Torrent will manufacture the medicines working to AstraZeneca’s rigorous quality and process standards. Based in India, Torrent has been manufacturing medicines for over thirty years and has a strong track record in registering and manufacturing a wide range of products.

The emerging markets are forecast to contribute around 70% of pharmaceutical industry growth in the next five years, and branded generics represent approximately 50% by value in these emerging markets. AstraZeneca believes it can capitalise on this opportunity and over time plans to broaden its portfolio beyond these initial 18 products.

In recent years AstraZeneca has invested significantly in key emerging markets, and has built a strong presence in many of them. Expanding the company’s branded generics portfolio will help to leverage its established sales and marketing presence in these countries.

Tony Zook, head of AstraZeneca’s global commercial organisation, said: “In markets where consumers and physicians have a strong preference for trusted brands, we believe AstraZeneca’s long-standing reputation for quality is a sustainable competitive advantage. Working in partnership with Torrent will extend the range of branded medicines we can offer to patients in emerging markets, where we see continuing opportunities for our business to grow.