Pfizer teams up with Mylan to drive generics business in Japan

Global pharma behemoth Pfizer (NYSE: OFE) and generics drug major Mylan (Nasdaq: MYL) 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 on each company's complementary strengths and quality assets.

Under the terms of the accord, financial terms of which are not disclosed, 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 track record of bringing new products to the market. Mylan's responsibilities primarily consist of managing operations, including R&D and manufacturing, building upon the company's global reputation for development of difficult to formulate products, quality manufacturing, supply chain reliability and service excellence.

Pfizer has been looking for ways to increase revenue from off-patent products and has entered into various deals to expand its generics footprint in emerging markets, including China and Brazil, where it acquired a 40% stake in Laboratorio Teuto Brasileiro, a leading company in the Brazilian generics industry (The Pharma Letter October 21, 2010), as well as linking with India’s Strides Arcolab for generics in the USA and with India’s Biocon for biosimilars development (TPL October 19, 2010).