Pfizer ties up with Cipla in first India partnership; what’s in the deal?

Pfizer Ltd said on Friday it has entered into an exclusive five-year supply and marketing agreement with Cipla Ltd for four of its established brands in India.

Under the agreement, Cipla will exclusively market and distribute Pfizer’s cough syrups Corex Dx and Corex LS, pain medication Dolonex, and acid reflux drug Neksium in India, Pfizer said in a stock exchange filing.

Pfizer will continue to manufacture, source and supply the medicines to Cipla, the company added.

There is no upfront consideration involved in the deal, with commercial terms agreed between the two companies.

Pfizer said the agreement would run for an initial period of five years and would result in a reduction in its sales field force.

The company said it would support affected employees in their career transitions, and the financial impact of the workforce reduction would be disclosed in its upcoming financial results.

The company said the partnership would help expand the reach of the four brands across India by leveraging Cipla’s extensive distribution network and customer reach.

“This partnership will significantly enhance availability of key brands for patients across the country,” Pfizer and Cipla said in a joint statement.

Meenakshi Nevatia, country president of Pfizer India, said the partnership will help meet the needs of millions of patients across India effectively.

““At Pfizer, expanding the reach of our medicines for patients is paramount and we are delighted to partner with Cipla to achieve this common mission,” she said.

Cipla’s Global Chief Operating Officer Achin Gupta said the company’s distribution capabilities will support wider reach for such trusted therapies to patients who need them the most.

“This association with Pfizer aligns with our continued focus on building a formidable presence across key therapy areas and enhancing access to high quality treatments guided by our purpose of ‘Caring for Life’,” he added.

The agreement marks the first partnership between Pfizer and Cipla in India.

Pfizer has operated in India for more than 75 years. Cipla is one of India’s largest drugmakers with a strong presence in domestic formulations and global generics.