Aurobindo Pharma Ltd and Russia-based OJSC Diod have formed a joint venture, Aurospharma Company, to manufacture and sell pharmaceuticals in Russia, Belarus and Kazakhstan.

Diod, a manufacturer of healthcare equipment and nutrition supplements, and the Hyderabad-based Aurobindo would have equal stake in the venture, according to a release issued here on Wednesday.

The financial aspects of the deal were not disclosed.

Plant in Moscow

Aurospharma would set up plant in the Podolsk District, Moscow to make non-penicillin and non-cephalosporin generics and other drugs in the over-the-counter (OTC) segment in the Podolsk District, Moscow.

The plant was expected to be fully operational towards the end of 2013.

The joint venture would also source penicillins, cephalosporins and few other therapy products from Aurobindo to be sold in Russia.

To harmonise interests of the partners in the Russian market environment, Diod would transfer its 100 per cent stake in the CJSC Olifen engaged in production of pharmaceutical substances being held by Diod to the joint venture subject to due diligence.

“The establishment of the JV should allow us to become an important player at the Russian pharmaceutical market within the target period,” Mr Vladimir Tikhonov, Chief Executive Officer of Diod, said.

“The JV format gives us an opportunity to localise our production in Russia. Using the Russian partner's marketing vision, we will be able to enter the growing and challenging Russian market with greater confidence and expedite our presence in the market,” Mr. Vishnu Sriram, Associate Vice-President, Aurobindo Pharma, said.

Aurobindo's scrip increased 3.31 per cent at Rs 137.25 on the Bombay Stock Exchange on Wednesday.

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