Daiichi Sankyo and Ranbaxy expand business in Mexico with launch of olmesartan

Japanese drug major Daiichi Sankyo (TYO: 4568) and its 64% owned Indian affiliate Ranbaxy Laboratories RANB: BO) plan to expand their business in Mexico to maximize their Hybrid Business Model, encompassing both innovative and affordable, high quality, generic medicines. Mexico is the second largest pharma market in Latin America, with drug sales last year estimated at $11.4 billion.

Specifically, the companies have agreed to expand the group's business in Mexico with the launch of the antihypertensive olmesartan medoxomil, originally developed by Daiichi Sankyo. The product is expected to be introduced to the market before the end of 2011. Daiichi Sankyo Mexico (DSMX), a newly-established subsidiary of Daiichi Sankyo, and Ranbaxy Mexico (RMEX) will leverage the Hybrid Business Model in Mexico by utilizing the business know-how and cost advantage of Ranbaxy, thereby offering both innovative and affordable, high quality generic medicines.

Olmesartan was rolled out under the Hybrid plan in six African markets in 2009, under the brand name Olvance (The Pharma Letter December 23, 2009).