Fujifilm and Dr. Reddy's End Japanese JV, though Future Deals Likely

By Dan Stanton

- Last updated on GMT

Related tags Fujifilm diosynth biotechnologies Pharmacology

Fujifilm and Dr. Reddy's End Japanese JV, though Future Deals Likely
Fujifilm and Dr. Reddy's End Japanese JV, though Future Deals Likely
The Japanese joint venture between Dr. Reddy’s and Fujifilm has been called-off though both say future collaboration remains likely, especially in API production.

Japan-Headquartered Fujifilm partnered with Indian firm Dr. Reddy’s Laboratories in 2011​, offering its quality control techniques developed for its photo business to support Dr. Reddy’s Japanese expansion. In return, the Indian manufacturer was to offer capability in developing APIs (active pharmaceutical ingredients) and generic formulations of generic drugs.

However, after two years the companies have announced the partnership has been terminated after Fujifilm reassessed its growth strategy.

Hiroshi Sato, a Fujifilm spokesperson, told in-Pharmatechnologist.com that Fujifilm has “changed the long-term strategy to focus on priority fields such as R&D of new drugs in the cancer field, super-generics, and biologics.”

However, future collaboration between the two companies have not been discounted and Sato spoke of future API manufacturing contracts with Dr. Reddy’s, as well as potential research, development and marketing collaborations.

As an example he said Dr. Reddy’s was “a candidate”​ to manufacture the APIs in India for Fujifilms’s oncology drug pipeline.

Dr. Reddy’s too confirmed that there were opportunities for future contracts and ventures with Fujifilm, and – spokesperson S Rajan told in-Pharmatechnologist.com - the firm “remains committed towards a planned entry into Japan to bring affordable and innovative drugs to more patients worldwide.”

Fujifilm’s ‘Super’ Expansion

According to a report from last November highlighting Fujifilm’s pharma ambitions, the company which currently concentrates on low-molecule, radiopharmaceuticals and generics intends to both grow its biologics business and begin developing new drugs.

Fujifilm also intends to launch a super-generics business  in FY2015, in order to enlarge its business.

Super-generics are small molecule drugs which are slightly adjusted in order to improve methods of delivery, design or formulation on normal generic clones, sometimes to the extent that they require a new drug application before getting approval from regulatory bodies.

Such differentiations can command higher prices for generic companies, and an opportunity to cushion margins in a highly competitive market.

Contract Manufacturing

Sato also told us that Fujifilm intends to expand its contract manufacturing businesses - Fujifilm Fine Chemicals for APIs and Fujifilm Diosynth Biotechnologies for biologics - globally.

According to the firm’s report, the market for biopharmaceutical manufacturing is expanding and plans to grow Fujifilm Diosynth it at an average rate of 15% between FY2013 and FY2015.

Recently the CMO announced it was expanding its mammalian cell banking facilities in the UK​ in order to increase its offerings in the growing biologics market.  

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