Laurus Labs on Thursday said it has inked a pact with Slovenia-based drug maker Krka to set up a joint venture firm in Hyderabad.
Krka will hold a 51% stake and Laurus 49% share in the joint venture.
The registered capital of the newly founded company amounts to rupees equivalent to 50 million euros, Laurus Labs said in a regulatory filing.
The joint venture will enable the production of finished products for the new markets, including the Indian market, it added.
"Our business relationship with Krka is very matured over the years and growing year-on-year. This JV further cements our relationship to enhance product portfolio and markets," Laurus Labs CEO Satyanarayana Chava said.
The JV also have plans to service quality products to the India market over a period of time, he added.
Krka President of the Management Board and CEO Joze Colaric said both partners are dedicated to delivering products of the highest quality.
"We believe that the joint company will have synergistic effects for both companies and would enable them to explore all opportunities, enter new markets and remain among leading suppliers of pharmaceutical products on the international market," he added.
The partners have agreed on a step-by-step development of the joint venture company.
The newly formed company will develop a plan to enter the Indian market and other markets outside the European Union, where neither party is currently present with its finished products.
Krka and Laurus have been working together contractually for many years and their businesses complement each other.
Shares of Laurus Labs ended 5.02% down at Rs 378.55 apiece on the BSE.
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