News Corp Australia has announced a $2.4 billion joint venture with industrial equipment supplier Alstom, a move that could give the Australian market access to the world’s largest pharmaceutical manufacturer.
The company, which has been a key partner in the pharmaceutical industry in Australia, announced the agreement with Alstam on Thursday.
News Corp and Alstamp are expected to announce the deal in coming days.
The deal, which will see Alstum’s pharmaceuticals supplied in Australia through Alstams supply chain, will see the two companies build an Australian manufacturing facility in Sydney’s CBD.
Alstamps chief executive officer Rob Stadler said the agreement would allow the Australian company to continue its presence in the industry in a big way.
“We have a great team here and a great relationship with AlSTAM,” he said.
Alstamp CEO Rob Stads said the agreement will enable the company to further develop its pharmaceuticals and provide a greater level of global access to Alstamina.
Mr Stads said the deal would allow Alstamas pharmaceuticals to be manufactured in Australia and delivered to the Australian medical market.
“[Alstams] is a leader in the field of industrial pharmaceuticals manufacturing in Australia,” he told reporters on Thursday afternoon.
Industry experts say the deal is a significant move for the Australian industry and could be the beginning of a wave of manufacturing in the country.
It will also be the first time Alstamin’s Australian subsidiary will produce pharmaceuticals in Australia.
Australia’s pharmaceutical industry has been hit hard by the pandemic.
Drug shortages have forced thousands of people to travel abroad to get their drugs, leading to shortages in many countries, such as China and India.
In Australia, the Australian Pharmaceutical Benefits Scheme has seen a massive fall in the number of prescriptions written, while prescription rates have been at record lows in recent months.
Dr Stad, who has a background in pharmaceuticals, said the partnership would be a huge boost for the sector. AAP/ABC