MUMBAI - In an attempt to add more teeth to its rapidly growing anti-diabetes franchise in India, Merck & Co.'s affiliate MSD India and Sun Pharmaceutical Industries Ltd. jointly announced the formation of an "India-specific strategic partnership" under which Sun will have the right to market, promote and distribute MSD's star products Januvia (sitagliptin) and Janumet (sitagliptlin/metformin) under different brand names.

The two companies did not disclose financial details of the pact or the brand names under which Sun will market MSD's ace products but clarified that the deal is only for the two anti-diabetes drugs and is not extended to any other therapy segments.

Januvia had sales of about 53 crore Indian rupees ($11.9 million) growing healthily at 64% on a yearly basis while Janumet clocked 36 crore Indian rupees ($8.11 million) during the same period, recording a growth of 55%, according to IMS Health December 2010 data.

According to industry estimates, the two brands together take a 4.2% market share of the total anti-diabetes drugs segment - pegged in the range of $375-$390 million - a segment growing at a rate of 20% plus.

Two weeks ago, when Merck announced its comprehensive agreement to align with Sun Pharma via a joint venture to develop and commercialize products as part of its emerging markets strategy, PharmAsia News had also predicted the possibility of the two companies teaming up for Januvia in India (`Merck Establishes JV With India's Sun Pharma To Develop Novel Combinations Of Branded Generics For Emerging Markets,' PharmAsia News, April 11, 2010).

Sun To Help MSD Enhance Access

"The partnership with Sun Pharma is focused on increasing the market access of sitagliptin and sitagliptin plus metformin in India, which is an urgent need, given the high disease burden of type 2 diabetes in India and the role of these drugs in helping to address the same," MSD India Managing Director K. G. Ananthakrishnan said.

"Both partners compliment each other's strengths in this arrangement. While MSD in India brings the scientific excellence and market success of the compound to the partnership, Sun Pharma brings its proven success and expertise in the marketing of drugs in the relevant therapeutic areas across India," said Anananthakrishnan, who headed Schering Plough Corp. in India before its global merger with Merck.

Aiming to make the most of the growing disease burden in India, Merck has charted out an aggressive growth plan for Januvia, pushing the product through a burgeoning sales force of more than 300 medical representatives - out of about 1,700 that it has employed. While doing so, MSD has also embellished its promotional efforts through a comprehensive disease management approach for diabetes using the "Sparsh" (which translates into "Touch" in English) helpline that follows-up with patients for glycemic controls and helps them manage their disease. That program, coupled with its "responsible pricing strategy," which prices Januvia at nearly one-fifth of prices in the US, has made a strong impact on Indian physicians.

"Sun Pharma enjoys a strong relationship with the physician community such as diabetologists, endocrinologists and consulting physicians treating patients with diabetes across India," Sun Pharma CEO S. Kalyanasundaram said.

"Through this partnership, the reach of sitagliptin and sitagliptin plus metformin will be enhanced amongst doctors and patients in India - helping them efficaciously manage the disease," the CEO said. Before joining Sun Pharma a year ago, Kalyanasundaram held various regional positions at GlaxoSmithKline Pharma Plc including heading its Indian operations.

In Stiff DPP-4 Market, Sun's Physician Reach Is Key To MSD

Of its total share of branded generics business in India, Sun's diabetes portfolio comprises about 11%, behind neuro-psychiatry at 27%, cardiology at 19% and gastroenterology at 14%. Sun had a combined market share of 4.4% in India, trailing Abbott Laboratories, Cipla Ltd., GSK and Ranbaxy Laboratories Ltd, according to Sun Pharma. The company also has 2,600 medical representatives covering 130,000 specialist doctors in India as its branded generics business has been growing at a CAGR of 22% over the last five years.

MSD Medical Director Swashraya Shah highlighted in an earlier interview aggressive moves to gain market share in the wake of stiff competition in the DPP-4 market as the AstraZeneca Plc -Bristol-Myers Squibb Co. combine launched their brand Onglyza (saxagliptin) and Novartis International AG made its own efforts to gain a share of the growing segment through its co-marketing alliances for Galvus (vildagliptin) with USV and Piramal Healthcare (Also see "Big Brand Fights Come To India As Januvia, Galvus And Onglyza Vie For Market Share" - Scrip, 2 June, 2010.).

"We are confident of bringing in more innovations to existing disease management programs and beyond that will continue to differentiate us in the market. We will constantly strive to become the preferred partner to physicians in the battle against diabetes," Shah said during that interview.

IMS Health June 2010 sales data showed that the top 35 metropolitan Indian cities contributed more than 85% of the total sales of the leading DPP-4 product. "It is a fast-expanding brand and could be expanding in smaller towns and cities soon," Mahesh Kalsekar, principal, Commercial Effectiveness, IMS Health explained.

USV has named its vildagliptin Jalra through a 2008 deal, and Piramal's brand was named Zomelis, which was launched in April 2010 (Also see "Novartis Aims Double Edged Attack With Galvus And Jalra To Take On Merck's Januvia In India" - Scrip, 6 November, 2008.).

- Vikas Dandekar (v.dandekar@elsevier.com)

On Heels Of Emerging Markets Deal, Merck Ropes In India's Sun Pharma To Boost Januvia Sales

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