Global research-based pharmaceutical company Pfizer and Canonsburg, Penn.-based pharmaceutical company Mylan have signed a definitive agreement to establish an exclusive long-term strategic collaboration to develop, manufacture, distribute and market generic drugs in Japan.
The collaboration is designed to build upon each company's highly complementary strengths and quality assets. Pfizer's responsibilities primarily consist of the commercialization of the combined generics portfolio, managing a combined marketing and sales effort using its strong brand reputation and exceptional track record of bringing new products to the market. Mylan's responsibilities focus on managing operations, including R&D and manufacturing, building upon the company's strong global reputation for development of difficult to formulate products, quality manufacturing, supply chain reliability and service excellence.
The collaboration between Pfizer and Mylan will include a portfolio of more than 350 marketed products across a broad range of therapeutic categories, as well as more than 125 additional products in development. Products included in the collaboration are expected to be sold under the strong Pfizer brand with joint labeling.
"We believe this collaboration will enable both companies to effectively build upon each other's core capabilities to help meet the needs of more patients and customers in Japan than ever before," said Albert Bourla, president and general manager of Pfizer's established products business unit. "This agreement will help us accelerate our ability to achieve our vision: transform the Japanese healthcare environment with established products by 2020."
"We are very excited to have the opportunity to be partnering with Pfizer to build upon our existing assets and drive an even stronger, more sustainable generics business in Japan—one which will be well-positioned to take advantage of anticipated growth in generic utilization in this market and other significant growth opportunities,” said Heather Bresch, CEO of Mylan. “With contributions from both companies, we believe the collaboration will result in a powerful generics platform that we believe will be a leader in Japan in terms of scale, scope and quality.
Japan is the second-largest pharmaceutical market in the world, behind the U.S., and the sixth largest generic retail prescription market worldwide, with sales of approximately $5.2 billion in 2011, according to IMS Healthcare. The Japanese market offers attractive growth prospects due to factors such as its aging population, numerous impending drug patent expiries and a broad array of government initiatives aimed at reducing health care expenditures. The Japanese government intends to grow the current volume of generic utilization from approximately 24%-30% by the end of 2012.
Pfizer and Mylan will each continue to operate independent entities in Japan, but will collaborate on current and future generic products, sharing the costs and profits resulting from the collaboration. The transaction remains subject to the satisfaction of certain closing conditions. Transaction terms remain confidential.