On Tuesday, Cipla said one of its units is setting up a joint venture in China with Jiangsu Acebright Pharmaceutical to make, sell, and distribute drugs. The venture will also involve research and development services and analytical development, the company said in a statement.
As part of the agreement, the unit Cipla EU will hold 80% in the joint venture, while Acebright will hold the remainder. Cipla EU will invest up to $24 million over four years, it said.
Cipla’s announcement underscores the increasing focus of Indian companies on China, the second-largest drug market in the world, where spending on medicines is set to reach $140 billion to $170 billion by 2023, according to research firm IQVIA.
Over the past three years, China has taken several steps to reform its healthcare sector, including expediting the pace of regulatory approvals, offering better reimbursement plans for generics, and rolling out a slew of investments to attract more generic drug makers…