Daiichi plans to sell products in Mexico through Ranbaxy

NEW DELHI: Japan���s Daiichi Sankyo will sell its products in Mexico through Ranbaxy, as part of its plans to exploit the marketing strength of the Indian company, in which it holds a majority stake. Ranbaxy has created a new marketing division in Ranbaxy Mexico, its Mexican subsidiary, for the purpose, the two companies said in a statement on Monday.

Ranbaxy Mexico was set up in 2004, and markets over 40 products in the $11-billion Mexican drug market. Mexico has a population of 107 million and is Latin America���s second-biggest market after Brazil.

In June last year, Daiichi Sankyo acquired Ranbaxy to leverage the Indian company���s low-cost manufacturing and global marketing strength. The Japanese company is now in the process of unlocking the potential of the so-called hybrid model ��� a combination of an original and a generic drugmaker.

Last month, the two pharma companies announced a similar tie-up for the European market. Ranbaxy sells its drugs in 125 markets and has subsidiaries in 49 countries.

Daiichi Sankyo president & CEO Takashi Shoda said: ���We are dedicated to driving synergy through our hybrid business model, which enables both companies to fully realise their strengths. I am pleased to announce one of such synergy, our commitment to directly introduce Daiichi Sankyo products in Mexico leveraging Ranbaxy���s strong platform.���

Commenting on the first such partnership for Latin America, Atul Sobti, CEO and managing director, Ranbaxy, said: ���The creation of a Daiichi Sankyo division within Ranbaxy Mexico marks our first endeavour in creating a dedicated marketing arm for Daiichi Sankyo���s portfolio of innovator products.���

Ranbaxy���s understanding of Latin American markets and local presence will provide an efficient and immediate market entry for Daiichi Sankyo, while putting in place a channel for the launch of its own speciality products, added Mr Sobti.