Zydus group managing director Pankaj Patel said that the new joint venture company, Zydus-Byk, will be set up as a 100 per cent export oriented unit. Byk Gulden will also source key intermediates for manufacturing the bulk drug, pantoprazole, from the joint venture. The two partners will make a cumulative initial investment of Rs 25 crore in the manufacturing venture.

Byk Gulden CEO and managing director Heinz W Bull said that a minimum 60 per cent of the intermediates production will be sourced from the joint venture, though Zudus Byk will also make formulations in India for both the domestic and export markets. The joint venture is expected to generatesales in excess of $15 million in the first year of operation.

"Byk Gulden is committed to the growth of the Indian healthcare industry through path-breaking R&D efforts, technological enhancements and innovations. The joint venture has taken a kaleidoscopic view and in the process scripted a new chapter in international co-operation," Bull said.Patel said that Zydus Byk will also set up a research and development venture to undertake contract and discovery work for both partners. The patent rights will, however, be retained separately.

Zydus has identified gastrointestinals as one of its thrust areas and has successfully developed a new process for manufacturing lansoprazole, omeprazole and pantoprazole. "We were within striking distance of developing a new, innovative process for pantoprazole and it was in this last stage that we approached Byk Gulden. The joint venture, thus, creates a new wholistic alternative with a shared focus," Patel said.