Pfizer and Cipla Sign 5-Year Exclusive Supply and Marketing Agreement
Filing Summary
Pfizer Limited has entered into an exclusive Supply and Marketing Agreement with Cipla Limited for the marketing and distribution of four brands: Corex Dx, Corex LS, Dolonex, and Neksium. The agreement spans an initial period of five years and is confined to the domestic market in India. No upfront consideration is involved, and the financial impact will be disclosed in future financial results. This arrangement will lead to a reduction in Pfizer’s field force, with support provided for career transitions. Pfizer will continue to manufacture and supply these products to Cipla.
Pfizer Limited has formalized an exclusive Supply and Marketing Agreement with Cipla Limited. This agreement pertains to the marketing and distribution of four specific brands: Corex Dx, Corex LS, Dolonex, and Neksium. The arrangement is set for an initial period of five years and is applicable within the Indian market. The agreement is in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The financial terms of the agreement specify that there is no upfront consideration paid or received by either party. The commercial terms have been mutually agreed upon but are not disclosed in detail. The financial impact resulting from the reduction in Pfizer’s field force will be reported in the company’s subsequent financial results. This reduction is a direct consequence of the new marketing and distribution arrangement with Cipla.
Under the operational scope of this agreement, Cipla will exclusively market and distribute the specified brands throughout India. Pfizer will continue to be responsible for the manufacturing, sourcing, and supply of these products to Cipla. The agreement does not involve any share exchange or joint venture ratios, as it is strictly a marketing and supply arrangement.
The timeline for this agreement is set for five years, commencing from the date of signing. During this period, Cipla will have the exclusive rights to market and distribute the specified brands within the Indian territory. Pfizer will support the transition of its field force affected by this agreement, ensuring career support for the impacted employees.
The parties involved in this agreement are Pfizer Limited and Cipla Limited. Pfizer will maintain its role in manufacturing and supplying the products, while Cipla will handle the marketing and distribution aspects. This collaboration marks the first partnership between the two companies in India, aiming to enhance the reach of Pfizer’s brands through Cipla’s extensive distribution network.
The agreement is significant in the context of the Indian pharmaceutical market, as it combines Pfizer’s established product portfolio with Cipla’s robust distribution capabilities. This partnership is expected to enhance the availability of the specified brands across India, although the filing does not provide specific projections or impact assessments.
Cipla Limited is a global pharmaceutical company with a focus on sustainable growth and a deep portfolio in key markets. The company is known for its strengths in various therapeutic segments and operates 46 manufacturing sites worldwide. Cipla’s strategic focus includes expanding its presence in key therapy areas and enhancing access to high-quality treatments.
Pfizer Limited is committed to delivering breakthroughs that transform patients’ lives. The company applies cutting-edge science and global resources to bring innovative medicines and vaccines to market. Pfizer collaborates with healthcare providers and communities to expand access to reliable healthcare solutions worldwide.