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* JV to make, sell generic, OTC products in Russia, Belarus, Kazakhstan
* To source penicillin, cephalosporin and other products from India
* Diod to transfer its holding in Russian drugmaker Olifen to the JV (Adds details, quotes, share price)
MUMBAI, Sept 7 (Reuters) - Indian drugmaker Aurobindo Pharma said on Wednesday it has formed an equal joint venture with Russia's Diod to make and sell generic drugs and over-the-counter products in Russia, Belarus and Kazakhstan.
Aurospharma Company - the joint venture firm - plans to build a manufacturing unit in Russia by end 2013 to make non-penicillin and non-cephalosporin generics and other over-the-counter products, Aurobindo said in a statement.
The joint venture would also source penicillin, cephalosporin and few other therapy products manufactured by Aurobindo Pharma in India and sell them in the Russia, it said.
Earlier this year, India's JB Chemicals agreed to sell its over-the-counter business in Russia to Johnson & Johnson's unit for about $260 million and its prescription business in Russia to India's Dr Reddy's Labs for $34.9 million.
"Establishment of a JV with Diod perfectly weds with our international expansion strategy, in accordance with which we establish partnerships with competent local companies in the target countries," Vishnu Sriram, associate vice president, Aurobindo, said.
"The JV format gives us an opportunity to localise our production in Russia."
Under the agreement, Diod would transfer its entire holding in a Russian drugmaker CJSC Olifen to the new joint venture firm, Aurobindo said.
At 3:00 p.m., shares of Aurobindo Pharma, which have lost 18 percent in value over the last 30 days, were trading up 3.42 percent up at 137.40 rupees in a firm Mumbai market. (Reporting by Kaustubh Kulkarni; Editing by Subhadip Sircar)