Vol. 4, No. 11 Nov.-Dec., 2000 

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Nicholas Piramal has launched a subsidiary named Genequest for research in genomics. Genequest will collaborate with the Centre for Biochemical Technology (CBT), a government laboratory. The collaboration will be in the field of pharmacogenomics (creating gene-based drugs), bioinformatics (applying IT to biotechnology) diagnostics and creating gene databases.

Genequest will also offer its services to other companies. Ranbaxy has expressed its interest. The collaboration will focus on studying the variation in genomic material and their links to specific diseases like diabetes, asthma, malaria, schizophrenia, diagnostics and diseases of the central nervous system. Nicholas Piramal will pay Rs 8 crore as technology transfer fees over three years.

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Kopran Pharmaceuticals has extended its Smyle brand to lip and skin jelly for cracked lips and dry skin. The product is priced at Rs 40 for 100 gram with an additional 25 gm packed free in the introductory offer. The company’s Smyle brand for mouth ulcers is already in the market.

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Cipla and Glaxo, leaders in the 103-crore inhaler market will have a few competitors vying for a piece of the marketing pie. Orchid Healthcare and Sun Pharma are planning to introduce dry powder inhaler (DPI) formulations in the latest form of drug delivery for anti-asthmatic medicines. DPIs are environment friendly as they do not contain chlorofluorocarbons. Sun Pharma’s decision follows its acquisition of Natco Pharma.

Similarly Orchid a leader in antibiotics called cephalosporins will also be venturing for a share in the DPI inhaler market. The total DPI market in India is estimated at Rs 26 crore and Cipla currently has a 90 percent share of the market. Who will dominate the market a few years down the line is for the inhalers to decide.

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India could become a key centre for substantial cost saving for multinationals in the sourcing of raw materials, clinical development of drugs and data processing according to Gary Phillips, area manager, Asia-Pacific of Novartis. The Swiss giant is itself in the process of utilising Indian talent for e-business solutions including development of applications and website designing. It has also started clinical trials in India prior to world-wide launch of its drugs and feel that strong product patent laws are necessary to make further inroads in this field.

At present, Novartis is running six clinical trials on Novartis drugs in China. It has also set up production facilities in China whereas it outsources most of its manufacturing in India. He feels that India is sending mixed signals to multinationals regarding TRIPS. Also the company has been reluctant to apply exclusive marketing rights (EMRs) for its drugs in India before product patents are introduced in 2005.

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Cheminor Drugs’ generic version of Eli Lily’s Prozac will have a delayed launch in the US by six months as the US FDA has granted market exclusivity to Eli Lily for the same period. The patent on Prozac was to lapse in February 2001. Cheminor, a Dr. Reddy’s group company (soon to be merged with its parent) was expecting to enter the US market for fluoxetine (Prozac’s generic name) after the drug went off-patent. Cheminor has stated that this move was expected and factored into its launch schedule. However, the company claims that it has already begun exports to Canada where the patent has expired. The US FDA has already approved Cheminor’s manufacturing facilities.

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The US multinational Pharmacia & Upjohn is a leading contender for the acquisition of the 40 per cent stake of Aventis Pharma in Rhone-Poulenc (India). A ten-member team has been sent by the company to help in the final round of due diligence of Rhone-Poulenc India. Reportedly Ranbaxy and Wockhardt also contenders have virtually lost interest because of the pricing of the stake. Also Nicholas Piramal and Zydus Cadila are also in the race. Jardine Fleming is in charge of the sale and the price is being put at around US $ 100 million. Aventis’ decision to sell has resulted from its decision to operate in India through its other subsidiary Hoechst Marion Roussel.

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The United Breweries group is in the process of selling off its non-core pharmaceutical business. Talks are on with two or three corporates and it is expected that some result will materialise soon. On sale are UB Pharmaceuticals and a group of smaller companies like Dominion Pharmaceuticals, Carew Pharmaceuticals and Optrex which mainly do contract manufacturing. The UB group sees itself as an alcoholic beverage company and as such its prospects are improving in India. The company’s facility at Tumkur has been leased out to Rallis India under an arrangement in 1997-98. For the year 1999-2000 UB Pharmaceuticals made a loss of Rs 2.6 crore on a total income of Rs 1.3 crore and its accumulated losses are around Rs 29 crore.

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Torrent Pharmaceuticals and Unichem Laboratories have joined the Indian Pharmaceutical Alliance (IPA), a lobby group of nine Indian pharmaceutical companies, which lobbies with the government on pharmaceutical issues. The others are: Ranbaxy, Nicholas, Cipla, Lupin, Wockhardt, Alembic, Sun ,Dr. Reddy’s and Zydus Cadila. With this addition, the strength of the lobby has gone up to eleven. Together the group accounts for 30 per cent of the domestic pharmaceutical formulations market and about 25 per cent of the industry’s exports.

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Cipla has temporarily discontinued exports of Duovir to Ghana following objection by Glaxo Wellcome that the drug contained viral drugs lamivudine and zidovuline, both of which are under patent to Glaxo Wellcome. These drugs are used for treatment of AIDS. Glaxo Wellcome claims to have exclusive rights under patent laws in Ghana. These drugs are manufactured by Cipla in India (as India doesn’t recognise product patents), and then exported and made available in Ghana at a fraction of the cost of the originally patented drugs. However, Cipla is awaiting the Ghana government’s decision in the matter.

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Morepen Laboratories is in the process of collaborating with the University of New York on a biotechnology project in which Morepen will have the rights to further develop, conduct clinical trials and market a new chemical entity developed and patented by the university. The company will pay a down payment to the university as development cost. The university will also be paid royalty on sales. The company is also in talks with two multinationals for exclusive marketing rights. Morepen also plans to start a new company to implement the biotechnology project with New York university.

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Sun Pharmaceutical’s ambitious joint venture in the US, Caraco, set up to tap the generics market there has piled up accumulated losses of more than US $ 48 million upto September, 30, 2000. Sun Pharma holds a 47 per cent stake in Caraco. Caraco is listed in the US and its shares are traded at around 28 cents and has a market capitalisation of around US $ 5.6 million. However third quarter losses in the current year has come down due to lower research and development expenses. 

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In a sudden about turn, AstraZeneca, the merged entity formed by the merger of Swedish Astra AB and British Zeneca plc has decided not to go ahead with the divestment of its stake in the Hinduja co-promoted Astra IDL. The original partner Astra AB had decided to sell its stake to the Hindujas but has reportedly decided not to.

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