AstraZeneca signs generics deal with Torrent

AstraZeneca have signed a license and supply agreement with Indian-based Torrent Pharma that will boost its generics portfolio.

Torrent will supply a portfolio of its generics medicines to the Anglo-Swedish pharma for which it already has licenses in several countries. Working in partnership with Torrent, AZ intends to brand and market these products to its targeted emerging markets.

As per the agreement, AZ will initially purchase the licenses and market authorisations from Torrent for 18 products in nine countries, with contractual flexibility allowing this to be extended.

According to the IMS, emerging markets are forecast to contribute around 70% of industry growth in the next five years. Branded generics are estimated to represent 50%, by value, in these emerging markets.

Tony Zook, head of AZ’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.

He added: “We have chosen Torrent because of their complementary product portfolio and proven ability to manufacture to AstraZeneca’s high quality standards.”

The move looks to be the exception to a broader strategy of not investing in generics and OTC businesses.

AZ chief executive David Brennan said last month that despite the dominance of generic medicines in most of the high-growth emerging markets, AZ did not believe that large-scale diversification into generics would sustain growth in the long-term.

Last week AZ announced 3,500 cuts in in-house research, primarily in the UK and Sweden, indicating that it will now invest a greater proportion of its R&D budget in external alliances.