Given that generics are going to play a major role in making universalhealthcare access, the generics thrust by New York-based Pfizer should not come as a surprise. The company?s Established Products Business Unit (EPBU), created as part of its reorganisation, is betting big on partnerships with Indian generics majors. The new business unit was formed last year to capture growth opportunities in established products?a $270 billion global market that is expected to grow to more than $500 billion within the next five years. Established products are medicines that have lost patent exclusivity or are close to losing exclusivity. The agreement with Aurobindo is an important milestone for Pfizer?s biopharmaceutical unit, feels David Simmons, president and general manager, Established Products Business Unit, Pfizer. Having over 12 years of experience with Pfizer, Simmons has chalked out strategies to expand the basket of offerings from the new business unit to the developing countries. In a recent interaction with BV Mahalakshmi, Simmons reveals that the Established Products Business Unit?s vision is to become oneof the world?s toppharmaceuticalplayers in the post-loss of exclusivity marketplace. Excerpts:

Having developed a synergy with Aurobindo Pharma, how do you view the next step in this relationship? Are there any plans to pick up a stake in Aurobindo?

Our agreement with Aurobindo is an important milestone for Pfizer?s Established Products Business Unit, which was formed last year to capture growth opportunities in established products?a $270 billion global market that is expected to grow to more than $500 billion within the next five years. The Established Products Business Unit is transforming Pfizer?s established products portfolio into an engine of growth. While the agreement with Aurobindo represents solid, measurable progress, and a strong commitment to achieving our growth objectives, we are not in discussions with regard to an equity stake with the company at this time. We do plan to continue to partner together for additional in-licensing opportunities. There are also no plans at this time to have a research agreement with Auobindo.

But how do you plan to develop research activities in India?

Pfizer remains committed to research and applying innovative science to improve world health. While Pfizer has an impressive portfolio of high-potential R&D projects and is committed to advancing our pipeline, the Established Products Business Unit is largely commercial and will not

engage in developing research activities in India.

What is the roadmap for products from India? Are you looking at other research activities such as traditional or regenerative medicines?

In terms of our current activities, we are looking to expand our sterile injectables portfolio from about 60 to 150. However, product launches vary by region and market. For competitive reasons, we do not disclose timing and specific nature of our product launch plans.

Are you also looking at acquisitions to grow in Asia?

Pfizer?s growth strategy is not contingent upon acquisitions; rather we have created a small number of targeted agreements with valued partners like Aurobindo to achieve overall business growth. While we would never entirely rule out an acquisition as a potential strategy, we are currently not planning to do so.

Reports suggest you have been talking to Cipla. Will that be a collaboration similar to Aurobindo?

As a policy, we do not comment on speculations in the market.

Are you looking at in-licensing of molecules with the Indian companies? Currently, how many molecules have been in-licensed and how many more are in the pipeline?

We have currently in-licensed more than 125 molecules. Going forward, Pfizer will keep building its product portfolio through additional licensing activities with Aurobindo and others in an approach that?s in line with our growth strategy. We have been working with Aurobindo and we see it as an excellent collaboration. Generally speaking, we are not looking to manage a complex web of partnerships?and instead we are developing just a few, very strong partnerships.

How can the US pharmaceutical companies extend their collaboration with their Indian counterparts?

Pfizer?s active participation with the US-India Business Council helps us forge key relationships, enhancing our ability to listen to and hear partners, customers and patients. As evidenced by our partnerships with Aurobindo and Claris, we recognise the critically important impact that India has on our industry and the world economy. We believe India has a strategic opportunity to leverage its unique capabilities and assets across the global healthcare market.

There is also an opportunity to make strides in India for Indian patients, and also to help India leverage those strides in many parts of the world. Ensuring that all innovation is protected under India?s patent laws will significantly expand the scope of collaborative activity in India and across our industry.

What is the nature of your relationship with Aurobindo?

We have recently entered into a strategic alliance with Aurobindo Pharma, a generics and active pharmaceutical ingredients company, which is targeting sales turnover of $2 billion by financial year 2013 from the current sales turnover of $800 million.

Aurobindo is looking at the alliance with Pfizer to market nearly 100 products in different geographies including the US, Europe and other emerging markets, Currently, Pfizer is marketing 27 products in the US and 63 in Europe.

Going forward, what will be your strategy to expand the company?s product pipeline?

Our strategy is to maximise the value of our existing portfolio while generating additional value from the post-exclusive pharmaceutical market that continuous to grow at double digit rates. We except to see stabilisation of our base business in 2009-2010 year-on-year growth in 2011 and acceleration of the business to double digit year-on-year growth in 2012.

Our four pillars of value creation include solid oral dose forms, product enhancement and reformulation and opportunities in niche markets. Overall, the global market for established products is big and growing. In 2006, the market was $270 billion and expected to touch $500 billon according to EvaluatePharma. With our broad established product portfolios and capabilities in low cost manufacturing, we can supply high quality medicines at affordable prices, thus giving more benefits to the patients.