The US drug giant Merck announced its deal with Sun Pharma on 11 April 2011 to develop, manufacture and commercialise ‘innovative branded generics’ in emerging markets.

The joint venture plans to develop innovative and differentiated drugs for markets in the Asia-Pacific, Latin America, Eastern Europe, Africa and Middle East regions, consisting mainly of variations of known medications.

Formulations will be developed using Sun Pharma’s Advanced Research Company technology, with Merck assisting in the regulatory competence and market presence of any products.

Emerging markets are expected to drive 90% of the world’s pharmaceutical growth, with 75% of that growth coming from branded generics.

Meanwhile, sanofi-aventis has decided to bring all of its European generic activities under the Zentiva brand. With this move, announced on 4 April 2011, sanofi-aventis believes it has created the third largest generics company in the European market and more importantly the fastest growing.

Mr Rob Koremans, President of Zentiva, commented that this re-branding signifies sanofi-aventis’s commitment to the group’s European generics business.

Like many of their multinational competitors, both Merck and sanofi-aventis are increasing their generics presence as growth slows in the US and Europe and blockbuster drugs start to lose their patent protection.