UK specialty drug maker Sinclair signed a collaborative deal Dec. 7 with Singapore-based Invida to commercialize a number of dermatology products in 11 Asian markets. While multinational drug makers are accelerating expansion in Asia, specialty pharmaceutical companies are teaming up with contract sales firms such as Invida to capitalize on increasing demand in the region.

Billed as a major partnership and expected to last at least 20 years, the agreement's scope is far greater than a contract sales agreement, Invida CEO John Graham said in a written response to PharmAsia News.

Invida will acquire exclusive rights to Sinclair's skincare and wound treatments and will be fully responsible to bring them to market, the CEO said. Sinclair's skin franchise includes treatments for fungal infection, acne, and atopic dermatitis; its wound care products treat skin infection, radiation dermatitis, wounds and burns.

The deal spans Australia, China, Hong Kong, Taiwan, South Korea, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

Invida is privately held by Singapore's state-owned Temasek, U.S. contract research organization Quintiles and Asian pharmaceutical distributor Zuellig Group.

The alliance is the latest addition to the Asian pharma marketing specialist, aiming to leverage its 4,000-person sales forces and regional presence in 13 countries. Invida has signed deals at a brisk rate with both large and small companies, such as Pfizer, Takeda, Ipsen, Actelion, Leo Pharma and Celgene.

Asian Derma Market Is Tested Water

The deal is a natural fit for Invida, which has been active in the dermatology market for a number of years and views it as a major area of focus. In 2008, it got a huge boost through acquiring Valeant Pharmaceutical's Asia Pacific operation for $38 million. The transferred portfolio included 230 products in dermatology, including Kinerase , Dermatix , and Efudix.

"We have been having success with Dermatix and are seeing the incredible demand for derma products in the region," noted Invida CEO Graham. He added that Invida has guided Dermatix through the registration and approval process and provides continued promotional support.

In China, due to a high prevalence of fungal infections, the dermatology market has grown steadily, especially in China's affluent Southern coastal area where the infection rate is estimated as high as around 50 percent. In 2008, the Chinese derma market was valued at RMB 5.3billion ($800 million), accounting for 3.6 percent of total pharmaceutical expenses, according to China Medicine Distribution Center data.

MNCs Dominate Dermatology Market

Products from MNCs dominate the China market; Xian Janssen Pharma's Daktarin (galantamine) antifungal cream leads the pack with 9.9 percent market share, followed by Merck's Elocon (mometasone).

In neighboring South Korea, dermatology drugs are commanding disproportionately large market share compared with its population, according to Invida. Due to huge demand and rising income levels, the dermatology market in Asia makes up a large segment and remains an area of immense opportunity, the company stated.

In addition, GlaxoSmithKline last year launched Stiefel's portfolio of skincare brands in India, which are doing very well according to GSK India Managing Director Hasit Joshipura (Also see "GSK India Managing Director Hasit Joshipura On Business Dynamics In India, Tiered Pricing And Approaches To Rural Markets: An Interview With PharmAsia News (Part 2 Of 2)" - Scrip, 23 November, 2010.).

GSK paid $2.8 billion for the dermatology firm Stiefel, which had added new opportunities in emerging markets. "With an acquisition like this, we have the chance to now globalize a portfolio ... which for whatever reason has been resource constrained. No Stiefel products in Japan, no Stiefel products in China, no Stiefel products in India. That clearly is an agenda for us to move forward," CEO Andrew Witty said earlier this year (Also see "J&J, GSK, AstraZeneca's Emerging Markets Roundup: PharmAsia News Earnings Call Roundup" - Scrip, 10 February, 2010.).

Increasing Presence In China

With the new alliance under its belt, Invida is poised to increase investment and sales forces in key Asian markets such as China. The company currently has the largest sales force in the Philippines, amounting for 1,300 sales reps due to traditional ties Zuellig Pharma has with the Philippines.

While maintaining a strong presence in rapidly growing Southeast Asian markets such as Indonesia and Thailand, Invida has also strengthened marketing in China and India. It is pursuing a branded generics strategy, through in-licensing and acquisitions. India has the second-largest sale force with 1,100 staff.

Early this year, the company announced the launch of Dermatix, a scarring reduction silicone gel and Zalainin China. Before China, Dermatix was launched in other key Asian markets and has become one of Invida's leading products. It also obtained registration for skincare brand Kinerase.

Louis Payet, Invida's regional director for business development & portfolio management, said he is looking to increase no less than 500 sales representatives in China over the next year, up from the present 350 (Also see "With Success From Big And Small Pharma Alliances, Contract Sales Firm Invida Hunts For Big Brand Buyouts In India" - Scrip, 4 August, 2010.).

Last year, Invida's total revenue was around $200 million.

- Brian Yang (pharmasia@elsevier.com)

Invida Goes Deeper In Skincare, Teams With Sinclair To Expand In Asia Pacific

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