Singapore: The Europen subsidiary of India's second largest drugmaker Cipla has inked a distribution pact with Serum Institute of India, securing legal rights for marketing and distribution of Serum's vaccine across European markets.

Initially, the companies are planning to begin pediatric vaccines distribution which will then be extended to adult vaccines for pneumonia, flu and human papillomavirus (HPV) for cervical cancer for women.

Mr Adar Poonawala, CEO and executive director, Serum Institute of India, said, "We are planning to manufacture and develop the pediatric vaccine. In future we also plan to extend this to adult vaccines."

As per the current agreement, while Serum Institute will develop and manufacture pediatric vaccines, Cipla will seek approval from the European Medicines Agency and market the products in Europe.

Mr Michel Baijot, head of vaccines, Cipla, said in a press release,"This is an alliance of two leaders in their respective fields to focus their efforts on alternate solutions for healthcare authorities in Europe on immunization programs."

Earlier this year Cipla had strengthened its presence in the European markets with the launch of respiratory products. Mr Frank Pieters, head of Europe, Cipla, said in a statement, "Vaccines are a critical component of our offering to European patients. With Cipla's front-end presence and with the support of a dedicated sales force, we will broaden the reach of vaccines across Europe."

Mr Poonawala further added that the deal will help both the companies market quality vaccines across Europe. "While Serum institute will invest on R&D, quality of products, facility and compliance issues of the plants, Cipla will bear the costs of doing registration and clinical trials in Europe as well as the distribution and marketing costs."

He further added that both the companies are likely to have equal share of revenue and profit.