Merck & Co joins forces with Sun Pharma for generics in emerging markets; halts S. aureus vaccine study

US drugs giant Merck & Co (NYSE: MRK) and India's Sun Pharmaceutical Industries (SUNPHARMA, BSE: 524715) are to create a joint venture to develop, manufacture and commercialize new combinations and formulations of innovative, branded generics in the emerging markets. Financial details of the JV, which will be based in India, were not disclosed.

"Merck's Emerging Markets strategy is driven by our overarching focus on applying innovation across our business from introducing novel compounds to broadening our focus on innovative branded generics," said Kevin Ali, president, Emerging Markets, Merck/MSD (as the drug major is called outside the USA). "By combining forces with Sun Pharma, we are complementing our innovative product portfolio with a solid foundation for addressing the diverse needs of patients, physicians and governments across the Emerging Markets," he added.

The partnership combines Sun Pharma's proven track record in rapid, innovative product development using Sun Pharma Advanced Research Company's (SPARC) proprietary platform technologies, and Sun Pharma's manufacturing network, with Merck's clinical development and registration expertise and a broad, geographic commercial footprint. The companies said that they will focus on 'innovative branded generics,' that bring together combinations of medicines using platform delivery technologies designed to enhance convenience for patients in emerging markets. The JV will be structured through Merck and Sun Pharma's respective subsidiaries.