- India-based Sun Pharma has entered a deal with Merck to develop Merck's antibody product Tildrakizumab for the treatment of plaque psoriasis.
- Traditionally, Indian pharma companies are known for enjoying lower production costs compared with other markets, as well as for having expertise in reverse engineering patented products.
- Sun will acquire worldwide rights to Tildrakizumab from Merck in exchange for an upfront payment of $80 million.
Sun Pharma has signaled to the industry that is is moving beyond generics and taking on the financial risk needed to develop new drugs and build its pipeline. In addition to paying the upfront fee, Sun is also spending an additional $250 million to $350 million on funding all clinical development and regulatory activities going forward, including subsequent submissions, pharmacovigilance, post-approval studies, manufacturing, and commercialization.
This is truly a breakthrough moment for Sun Pharma, and possibly a harbinger of future collaborations between India and other countries' branded pharmaceutical sectors.