Sun Pharma calls off Merck deal
Our Special Correspondent, Mumbai: Sun Pharmaceutical Industries and Merck Sharp & Dohme (MSD) have decided to terminate a joint venture to develop, manufacture and commercialise branded generics for emerging markets.
Sun Pharma today said the partners had put in significant efforts to pursue the plan of providing generic drugs to emerging markets outside India. However, changes in strategic priorities have led both the companies to decide not to make further investments. Therefore, a decision has been taken to wind down and terminate the collaboration agreement.
The joint venture was established in 2011 to develop and commercialise novel formulations and combinations of medicines for emerging markets. MSD is the trade name for Merck & Co outside the US and Canada.
Sun Pharma did not disclose the investment it has made in the venture. However, it said there would be no material impact of the termination on its standalone or consolidated financials.
"Additionally, this termination agreement does not apply to, or have an impact upon, other business relationships that MSD and Sun Pharma may have,'' it said.
Meanwhile, Sun Pharma beat Street estimates by posting its December-quarter consolidated net profit at Rs 1,416.6 crore against Rs 395.33 crore a year ago.