Aurobindo sets up JV with Diod to make and market generic drugs in Russia

Indian drugmaker Aurobindo Pharma (ARBN: BO) and OJSC Diod, a Russian manufacturer of ecological health care equipment and nutrition supplements, are setting up a 50:50 joint venture, to be named Aurospharma, to manufacture and sell generic pharmaceutical products in the markets of Russia, Belarus and Kazakhstan.

As a part of this cooperation, the JV intends to construct a state of the art plant to manufacture non-penicillin and non-cephalosporin prescription generics and other drugs that are classified as over-the-counter (OTC) products in Russia. To harmonize the interests of the JV partners in the Russian market, it is planned to transfer 100% interest in CJSC Olifen (engaged in the production of pharmaceutical substances) being held by Diod to the JV company subject to due diligence. In addition, the JV will source penicillins, cephalosporins and few other therapy products manufactured by Aurobindo India to sell in Russia, Belarus and Kazakhstan.

Will bring savings for govt drug procurement program