India’s Zydus Buys Brands from US Merck
Indian pharmaceutical company Zydus Cadila has acquired six brands from US drugmaker Merck for an undisclosed sum. The branded products are anabolic steroids Deca-Durabolin and Durabolin, which are widely prescribed for treating osteoporosis, injectable testosterone Sustanon, intra-uterine device Multiload, hypertension treatment Sicastat and Axeten used in wound management.
The deal includes the transfer of distribution and commercialization rights as well as assignment of all the trademarks to wholly owned subsidiary Zydus Healthcare.
As part of the transaction, Organon (India) Private, a Merck subsidiary operating in the country, has also transferred distribution and commercialization rights for Deca-Durabolin and Durabolin in Nepal.
Chairman of Zydus Healthcare, Sharvil Patel, said the Ahmedabad-based company has a longstanding association with Merck in India, and the acquisition of the complementary brands provides a great opportunity to strengthen its core offerings to create value and growth. The acquired portfolio had sales of 840 million Rupees – around $12 million – in 2015, and Zydus said it expects to grow the brands significantly during the next few years.
With revenues of more than Rs 9,800 crore ($1.4 billion) in 2016, the Indian group is aiming to become a research-based pharmaceutical firm by 2020. Zydus Cadila also operates in Europe (France and Spain), the US, Latin America and South Africa.
