New Delhi: Drug major Ranbaxy Laboratories and its Japanese parent Daiichi Sankyo on Wednesday announced synergies in Brazil to expand their business in the Latin American nation.
As part of the collaboration, Ranbaxy will support Daiichi Sankyo's Brazilian subsidiary, Daiichi Sankyo Brasil Farmaceutica Ltda to enter the branded generics market, in addition to its established business of providing innovative products, Ranbaxy said in a statement.
"With the announced synergistic collaboration, the Daiichi Sankyo Group will expand its presence in Brazil through its hybrid business model promoting innovative, branded generic and generic pharmaceuticals," it added.
In Brazil, Daiichi Sankyo has built up its market presence with innovative pharmaceuticals through Daiichi Sankyo Brazil.
On the other hand, Ranbaxy markets its generic products in Brazil through its subsidiary, Ranbaxy Farmaceutica.
The pharmaceutical market in Brazil is the biggest in Latin America, and it is expected to become the fourth biggest in the world in 2016.
Earlier, this year Ranbaxy and Daiichi Sankyo integrated their business operations in Thailand as part of strategy to maximise synergies.
Ranbaxy became a part of the Daiichi Sankyo Group in 2008 after Japan's third largest drug-maker bought a majority stake for Rs 22,000 crore.
Under the hybrid business model adopted by the two firms, Ranbaxy primarily focuses on generic medicine research both for itself and its parent firm, while the new drug discovery programme is undertaken taken up by Daiichi Sankyo.
Shares of Ranbaxy were trading at Rs 444.45 on the BSE in afternoon trade, down 0.97 percent from their previous close.