Cadila Pharma in talks with Swedish Bactiguard for JV

Written by Soma Das | New Delhi | Updated: Feb 23 2012, 06:56am hrs
Cadila Pharma, promoted by Rajiv Modi, is in the final stages of floating an equal partnership joint venture with Swedish medical technology firm Bactiguard, which is likely to be registered as Casil BG Medical Devices.

While Casil Industries is a Cadila Group company headed by Atul Tandan, BG stands for Bactiguard. This independent entity would begin by marketing the entire range of anti-infective portfolio of the Swedish firm straddling across the three therapeutic areas urinary tract, respiratory tract and blood stream consisting of over 150 products. However, going forward the JV plans to not only set up manufacturing facilities in India, most likely in Gujarat, but also invest in R&D and develop products.

This should not be construed as just a marketing pact. However, we want to take one step at a time and marketing and distribution of Bactiguard products would be the first step, said Christian Kinch, CEO, Bactiguard.

The JV would launch the existing products of the Swedish firm in the domestic market towards the end of the year in the first phase. Modi indicated that although the current focus of the entity would be to consolidate in the domestic market, the JV would in future explore marketing of the products in other emerging markets.

Kinch said that within 15 years of entering US and Japan, his firm grabbed over half of the entire catheter market. Having announced its entry into the Chinese market about five months back, Bactiguard is gradually increasing its focus in emerging markets.

The western world is struggling with financial crisis. The economies are in freefall and almost all EU countries are facing a slowdown. Sweden is no exception. This, however, has presented us with an opportunity to increase our play in the emerging markets, the primary sources of future growth, Kinch said. And markets such as India are in dire need to improve their healthcare infrastructure. Considering the shortage of doctors, paramedicals and beds, it is criminal and wasteful that preventable hospital infections are rampant and end up increasing the length of stay of the patient, significantly blocking the already scarce resources, he added.

Outside of the JV, Cadila would explore the option of entering Sweden with its drug portfolio by leveraging the JV.