DrugMax, Inc. Forms Joint Venture with India-based Pharmaceutical Manufacturer; Will Provide Generic Pharmaceutical Line in US
LARGO, Fla., Nov. 7 /PRNewswire/ -- DrugMax, Inc. (Nasdaq: DMAX - news) a full- line wholesale distributor of pharmaceuticals, over-the-counter products, health and beauty aids and nutritional supplements, announced that the Company has reached an agreement with India-based Morepen Laboratories Ltd. to form a joint venture company, MorepenMax, and provide low-cost generic pharmaceuticals in the United States.
MorepenMax will utilize Morepen's ISO 9000 certified facilities that already develop and manufacture a vast range of generic pharmaceuticals including Loratadine, a generic form of Claritin. These new generics will comply with all USFDA guidelines. MorepenMax will file ANDAs (Abbreviated New Drug Application) in the United States. DrugMax will market and distribute these generic drugs throughout the country. Morepen will own the majority stake in MorepenMax.
``DrugMax has explored several strategies to capture more of the generic pharmaceutical market,'' Bill LaGamba, DrugMax President and COO, said. ``Morepen Labs is a major international provider of generics and raw materials used to make generic drugs. Internationally, Morepen, has an excellent reputation and comes highly recommended because of the company's commitment to the research and development of the highest quality products available anywhere in the world. We are extremely excited and proud to enter into this joint venture with such a strong international partner.''
``This joint venture is a milestone for us and will lay the foundation for a strong presence for Morepen in the USA markets,'' Sushil Suri, Morepen Chairman and Managing Director, said. ``With a number of generic drugs worth an estimated $63 billion scheduled to go off patent by the year 2005, it provides us with immense business opportunities.''
``This partnership affords DrugMax increased flexibility and makes us more than just a wholesaler that picks, packs and ships,'' LaGamba said. ``DrugMax can provide additional generic lines and offer raw materials to manufacturers. We can exercise greater influence over the supply chain and diversify our product line.''
``Morepen has several components to its business,'' LaGamba said. ``The company provides raw materials to generic manufacturers worldwide, manufactures finished generic pharmaceuticals and is also involved in the production of nutritional supplements. The ability of MorepenMax to provide timely, quality generic lines at low production costs, will help both companies increase the economies of scales and bottom lines for both companies. We are extremely excited about the long-term potential of this venture.''
About Morepen Laboratories Ltd.
Morepen Laboratories Ltd. (MLL) is a rated amongst India's top 25 fastest growing companies (Business World survey). Worldwide, Morepen's activities span across markets around the globe with customers in over 50 countries including the highly regulated markets of the USA, Canada and Western Europe. Morepen has resources of international standing and USFDA-approved manufacturing facilities adhering to the most stringent standards of quality excellence. The three state-of-the-art manufacturing plants meet quality guidelines and regulatory requirements for exports to various countries. Morepen has four strategic business units functioning as independent profit centers -- Global Generics, Medicus, Medipath and Dr. Morepen. Experienced professionals manage each of these units that have an extensive marketing and distribution network unique to their business. For more information about the company, visit www.morepen.com. |
