Abbott and MSD Pharmaceuticals have announced a strategic distribution partnership to expand access to MSD's oral anti-diabetic portfolio in India, targeting the country's massive diabetes patient population of over 101 million people. The agreement positions Abbott to leverage its extensive distribution network to market MSD's sitagliptin-based diabetes treatments across India.
Strategic Partnership Details
Under the distribution agreement, Abbott will market MSD's sitagliptin portfolio, including the standalone drug and its fixed-dose combinations with metformin. The products are marketed under the established brand names Januvia, Janumet, and Janumet XR, which continue to maintain leadership positions in their therapeutic category despite losing patent exclusivity.
Sitagliptin, classified as a Dipeptidyl Peptidase IV (DPP-4) inhibitor, was the first drug in its class to launch in India in 2008. The medication is used for the treatment of Type 2 diabetes, helping to reduce HbA1c levels and improve glycemic control in patients.
Market Dynamics and Patent Landscape
The partnership comes at a critical juncture for the sitagliptin market in India. Drug patents for sitagliptin expired in July 2022, triggering a wave of generic launches and significant price corrections across the market. Despite this competitive pressure from generic alternatives, MSD has retained substantial market share in value terms, demonstrating the brand's resilience and established market position.
India's oral anti-diabetic drug market represents a significant commercial opportunity, valued at Rs 12,500 crore. Within this market, DPP-4 inhibitors account for Rs 4,000 crore, with sitagliptin commanding over 60% of the global market share in this therapeutic category.
Addressing India's Diabetes Crisis
The collaboration addresses a critical public health challenge in India, where diabetes prevalence continues to rise. Beyond the 101 million people currently living with diabetes, an additional 136 million Indians are classified as pre-diabetic. Non-communicable diseases account for 60% of deaths in India, highlighting the urgent need for accessible diabetes management solutions.
"Through our extensive presence, we can help people in India better manage their Type 2 diabetes and take control of their health," said Ambati Venu, Vice President of Abbott in India. Abbott's commitment extends beyond therapeutics to include integrated diabetes care encompassing diagnostics, monitoring, nutrition, and treatment options.
Strategic Business Model
The partnership represents a sustainable business approach for both companies in the post-patent environment. "Our partnership with Abbott establishes a sustainable business model that will enable us to continue to serve patients throughout India with these diabetes treatments," stated Rehan A. Khan, Managing Director of MSD India Region.
This collaboration reflects a broader industry trend of multinational pharmaceutical companies adapting to post-patent landscapes by forming local partnerships to maintain market presence and scale patient access. The Abbott-MSD alliance demonstrates how established pharmaceutical companies can leverage distribution partnerships to navigate competitive generic markets while continuing to serve patient populations effectively.
