India's Orchid Signs Agreement With Alpharma

Orchid Chemicals, a medium-sized Indian drugmaker, has signed an agreement with US-based firm Alpharma to produce and supply generic products to be exclusively marketed by Alpharma in the US and Europe. Under the deal, Orchid will supply the prospective drugs' active ingredients and finished formulations, with the two companies to share profits and a portion of development costs. The US company expects 10 products to be launched from 2007, with further products to be marketed in following years.

Orchid, which mainly produces antibiotics, recently moved to increase its stake in US drug discovery joint venture Bexel Pharmaceuticals to 75%. In common with many medium-sized Indian drug producers, Orchid is hoping to emulate the recent success of leading rivals such as Ranbaxy by moving into developed markets and boosting discovery capabilities.