Matrix Lab inks JV with S African firm

EPP News Bureau - New Delhi

Pharma major Matrix Laboratories Limited and the $321 million South Africa-based Aspen Pharmacare Holdings Ltd have forged a strategic alliance for further strengthening of their respective businesses by forming joint ventures in India and South Africa.

As part of the pact, both the companies have signed two separate memoranda of understandings (MoUs) to enable them to hold cross-country ownership in two pharmaceutical manufacturing units through joint venture (JV) route.

According to the first MoU, Matrix and Aspen will form a 50:50 JV in India, which shall manufacture Active Pharmaceutical Ingredients (APIs) required by Aspen. Matrix would license the product technology relating to several Active Pharmaceutical Ingredients (APIs) to the JV Company on a non-exclusive basis. Matrix said Aspen would uplift its requirements of these APIs from the JV company.

Through the second MoU, Matrix will pick up a 50 per cent stake in Cape Town-based Fine Chemicals Corporation (FCC), wholly-owned by Aspen. With expertise in handling oncology, controlled substances and high potency APIs, the $ 23 million FCC has US FDA approved manufacturing facilities and has filed 25 DMFs with the US Food and Drug Administration.

‘‘The strategic alliance will go a long way in further strengthening our overall API business. In addition, it will also give Matrix a strategic presence in South Africa,’’ said Matrix CEO N Prasad in a statement.