Pfizer announced Tuesday that the company entered into an agreement with Aurobindo to licence generic drugs in the US and Europe. David Simmons, president of Pfizer’s established products unit, stated that the company is “committed to dramatically changing our established products portfolio from a significantly shrinking segment of the business to an engine of positive growth.”

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Simmons said the drugmaker intends to expand the unit’s product portfolio “through additional activities with Aurobindo and other companies,” and indicated that the drugmaker is targeting 2013 “to generate more than $1 billion in incremental sales…through portfolio expansion.” He added that Pfizer is also contemplating marketing strategies for generic drugs in emerging markets.

Pfizer will gain rights to 39 generic oral medicines in the US and 20 in Europe, with an additional 11 in France. The company will also acquire rights for 12 injectable antibiotics in the US and Europe, including penicillins and cephalosporins. The company did not specify which treatments would be licenced, but indicated that the products would cover a “broad range of therapeutic areas, including cardiovascular disease and central nervous system disorders.” The drugmaker anticipates that the generic products will generate annual sales exceeding $200 million in 2013. Financial terms of the agreement were not disclosed.

Commenting on the deal, Miller Tabak & Co. analyst Les Funtleyder remarked that “it’s not a bad move,” noting that it fits into Pfizer’s recent strategy to diversify. Funtleyder remarked that it was actually appropriate for the company to “bolster its generic unit because generics are going to play a big role in healthcare reform.”

Source: FirstWord

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