After days of speculation and denials , Ranbaxy Laboratories and Orchid chemicals finally announced an alliance "involving multiple geographies and therapies for both finished dosage formulations and active pharmaceutical ingredients." But what does this agreement actually mean on the ground?In my opinion, deal unites Orchid’s manufacturing capabilities in Cephalosporins (a new generation of antibiotics) and Carbapenems (antibiotics administered intravenously in hospitals for serious infections) with Ranbaxy’s marketing prowess and wide geographical reach. Orchid has FDA certified manufacturing plants in addition to a wide range of product offerings in Cephalosporins and Carbapenems, but it lacks the front-end to market them. This is exactly where Ranbaxy scores—over the years, it has invested heavily to build a marketing and distribution network across geographies. This is why the alliance is good for both firms.</p...
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