India

India's biopharma surges on outsourcing boom

John Carroll — Thu, 14 Aug 2008 11:11:06 -0400

A combination of a weakened currency and an urgent need to cut costs at big pharma companies is driving a surge of drug development and manufacturing business for India. The Wall Street Journal says bad times in Big Pharma are spurring a boom for operators in India as well as China. And about the only near-term switch that could blunt the wave would be a decision to engineer a more valuable rupee.

But one analyst cautions that many Indian developers are finding that the transition from manufacturing generic drugs to devising new therapies can be hard.

"Two years ago, we thought Reddy would do it," said Sandeep Shenoy, a strategist at PINC Capital. "Three years back, we thought Cipla might do it. Every one of them has had problems."

- read the article from the Wall Street Journal

India's biotech growth slows to 20%

Maureen Martino — Wed, 16 Jul 2008 08:36:42 -0400

After five years of rapid expansion, India's biotech industry growth has slowed to 20 percent from previous highs of 50 percent, according to the Association of Biotech Led Enterprises (ABLE). The rising rupee and pricing pressures in the world market are to blame. "The inability to sustain the growth momentum can be attributed to several factors; the primary one being that revenues from Indian-made innovative biotech products that can be sold globally are yet to kick in," said K.K. Narayanan, president of ABLE. Still, the country is expected to bring in between $13 billion and $16 billion by 2015.

- here's the report

Study projects new wave of globalization in biopharma

John Carroll — Wed, 11 Jun 2008 11:13:18 -0400

Don't be misguided by dated reports discounting the impact Indian and Chinese scientists are having in drug development and other key technologies, says a new study from Duke and Harvard. Looking at recent data, research teams from those two countries have swiftly expanded their work in the field. A look at 2006 data shows a four-fold increase in the number of patents filed since 1995. And pharma giants like Merck, Lilly and J&J have been shifting research and manufacturing to India and China as they seek new ways to develop drugs on a lean budget, pushing a new wave of globalization.

"Driven by cost pressures and growth opportunities, they are partnering with firms there to do sophisticated drug research and clinical testing," writes Vivek Wadhwa in BusinessWeek. "Indian and Chinese companies are making strides in the segments of global value chains that are most lucrative. They are also now performing their own drug discovery with the hope of marketing new products through their multinational partners."

- read the article from BusinessWeek

Merck turns to Ranbaxy for $100M R&D effort

Mon, 12 May 2008 06:59:58 -0400

India's Ranbaxy has flexed its research muscles once again, this time signing a five-year pact with Merck to develop new anti-infectives. Ranbaxy, which received an undisclosed upfront payment, says it stands to earn more than $100 million from each new therapy developed in the five-year collaboration, which follows a similar deal it signed with GlaxoSmithKline. Ranbaxy researchers will advance therapies into Phase II, at which point Merck will take over the development program. Ranbaxy shares jumped more than five percent on the news.

This new deal signals an ongoing effort by big pharma companies to reduce their expenses by shifting development programs into China and India. Eli Lilly has also aggressively pursued an Asian strategy for its R&D work as well.

"We are going to start work on a minimum of two (drug candidates), and we can then add to it later," Ranbaxy CEO Malvinder Mohan Singh told Dow Jones.

- see this release on the deal
- read the report from Dow Jones

Traditional remedies offer opportunities, challenges

Thu, 08 May 2008 06:59:55 -0400

The Financial Times delves into the push to develop new therapeutics from traditional Chinese and Indian remedies. There have been successes, including the anti-malarial artemether, which was developed from a plant long used to treat fevers. But researchers note that there are some extraordinary challenges. Natural remedies often rely on a volatile mix of natural ingredients that can have a radically varied effect on different people.

"Traditional medicines can be very dangerous," says Paul Herrling, Novartis' chief of corporate research. "Practitioners had no concept of statistics or of long-term consequences such as treatments that may cause cancer when used over many years."

Novartis and Merck were the only two big pharma companies to stay in the field. And a slate of biotechs joined them, including Nicholas Piramal and Phytopharm. MerLion in Singapore has been active as well after acquiring some of GlaxoSmithKline's traditional assets.

- read the article in the Financial Times

SPOTLIGHT: Biocon establishing R&D sub

Mon, 28 Apr 2008 06:59:53 -0400

India's Biocon says it will transfer four molecules to a new R&D subsidiary, resisting a trend in the subcontinent of spinning off R&D into a new company. Its researchers are working on new drugs for diabetes, cardiovascular, inflammation, oncology and endocrinology. Report

India eyes R&D opportunities

Thu, 17 Apr 2008 06:59:55 -0400

India-based drugs have made a name for themselves as makers of copycat drugs. When a developer's lucrative drug goes off-patent, Indian companies are guaranteed to swoop in and make a less-expensive knock-off of the therapy. It's a strategy that's definitly paid off for the developers.

But now some of these companies are shifting gears and developing their own drugs from scratch. Why now? Mainly because the talent pool in India has improved to the point where drugmakers have the resources to do their own R&D. "In the past, anyone interested in fundamental research had to go to the West, but the talent is here and now the barrier is broken," says Ian Cliffe, a senior executive at Ranbaxy. Another factor is India's new patent protection laws, which were a condition of its acceptance into the World Trade Organization.

Ranbaxy recently announced plans to spin off its R&D unit. Sun Pharma, Orchid Research, Wockhardt, Glenmark Pharmaceuticals and Nicholas Piramal all have plans to do the same. India is betting its lower costs and talent pool will give it a leg up in the global pharmaceutical market in the coming years.

- read the Financial Times article for more

Related Articles:
Ranbaxy spins off R&D unit. Ranbaxy report
Ranbaxy touts R&D abilities in new discovery pact. Ranbaxy report
Glenmark to spin off generics business. Glenmark report

SPOTLIGHT: Biocon denies buyout report

Mon, 14 Apr 2008 06:59:53 -0400

Biocon caused a stir this morning after an Indian financial newspaper claimed the country's biggest biotech was nearing a $400 million buyout deal with a U.S. company. But Biocon executives moved quickly to squelch the story, saying the report was "speculative" and inaccurate. Report

Affymetrix tech to be used in new gene study

Mon, 24 Mar 2008 07:59:54 -0400

India's Avesthagen has inked a deal to use Affymetrix's microarray technology in a genetic study involving 60,000 Parsi. The Avestagenome Project is studying the genetic foundation behind longevity. Almost a third of the Parsi population lives beyond the age of 60, compared to seven percent of the country's entire population.

- see this release
- read the story in the San Jose Business Journal

Related Articles:
Affymetrix to acquire ParAllele in $120M deal. Report
Longevity gene may be key to living past 100. Report
Biotechs pursue anti-aging treatments. Report

Dr. Reddy's joins with 7TM on research pact

Mon, 10 Mar 2008 07:59:56 -0400

India's Dr. Reddy's Laboratories is teaming up with 7TM on a drug discovery deal for metabolic disorders. Both companies agreed to collaborate on selecting new drug candidates, jointly advancing them through Phase IIa, when they can decide whether to license them out to another developer or take them on ahead as far as commercialization. The financial terms are being kept private.

"7TM has established a track record as one of the leading drug discovery companies focusing on GPCRs, and we are excited at the prospects of combining 7TM's capabilities with Dr. Reddy's to discover and develop innovative products," said Rajinder Kumar, Dr. Reddy's president.

- here's the release
- read the report from the Business Standard

Related Articles:
Dr. Reddy's make risky biogenerics move. Report
Dr Reddy's ready for new challenges? Report
Dr. Reddy's to buy Betapharm in $570M deal Report

BioCon buys stake in German pharma company

Fri, 15 Feb 2008 06:59:56 -0500

Fulfilling an earlier promise to acquire a company, Bangalor-based BioCon has spent €30 million to purchased a 70 percent stake in German pharmaceutical company AxiCorp. The deal will allow BioCon to market its injectable insulin, Insugen, in Europe; it will be followed by other generics, biosimilars and biologics.

In January BioCon indicated that it was exploring ways to promote its products in North America and Europe, and planning to spin off its clinical research group. According to Biocon's release, this marks the first of several acquisitions Biocon has planned following the sale of its enzymes business last year. "We are very focused on becoming a key player in insulin globally," said a BioCon spokesperson. "We can deliver through a combination of Biocon's low cost manufacturing and AxiCorp's low cost distribution."

- here's the release
- and check out this Economic Times report

Related Articles:
Biocon CEO plans acquisition, spin-off. Report
Biocon plots new deals after sale of enzymes business. Report
India focuses on biosimilars. Report

Biocon CEO plans acquisition, spin-off

Thu, 17 Jan 2008 06:59:55 -0500

Biocon chief Kiran Mazumdar-Shaw says the Indian drug developer is close to completing a multimillion-dollar acquisition to push its products in North American and Europe and plans to spin off its clinical research group--Syngene--into a separately listed company. Shaw added that the spin-off should be completed this year.

"We believe Syngene has attained critical mass that can be leveraged to deliver a strong growth trajectory," says Shaw. "As one of Asia's largest and most profitable contract research companies, Syngene's public float can deliver superior shareholder value."

- read the article in the Hindustan Times

Related Articles:
Biocon plots new deals after sale of enzymes business. Report
India focuses on biosimilars. Report

Forecast: BioPharma outsourcing will grow '08

Wed, 16 Jan 2008 06:59:54 -0500

Biotech and Big Pharma alike are taking outsourcing to new heights in 2008, according to IDC's Health Industry Insights report. This year everything from R&D to clinical trials and manufacturing will be outsourced in growing volumes to countries like Singapore, India and China, says the new forecast. Singapore in particular was lauded for its huge investments in the drug development and manufacturing field and a reputation for strong intellectual property provisions.

- see this release
- here's the report from the Birmingham Business Journal

Related Articles:
Chinese outsourcing poses new risks. Report
AstraZeneca to outsource manufacturing. Report
Eli Lilly to outsource half of research by 2010. Report

San Diego biotechs expanding ties to China

Mon, 17 Dec 2007 06:59:54 -0500

These days in biotechnology, if you're not already tied in some way to China, you're giving it some serious thought. Over the last few years, San Diego's biotech community has steadily expanded its contacts with researchers in Beijing and Shanghai. Executives from Invitrogen and other biotechs routinely make the 12-hour commute, expanding their footprint in a country that promises to play a leading role in drug development.

"Nowadays you would be hard-pressed to find a decent local biotech that is not using a (foreign contract research organization) or at least seriously considering using a company from China or India," Zhu Shen, head of business development at San Diego-based Immusol, told the San Diego Union-Tribune.

- read the report from the San Diego Union-Tribune

Related Articles:
R&D spending going gangbusters in China. Report
China surges past India in drug discovery work. Report
China pushes drug development as R&D soars. Report

ALSO NOTED: Cipla, Akorn in development deal; No charges in Sepracor probe; Vectura raises funds; and much more...

Tue, 27 Nov 2007 06:59:50 -0500

> The FDA has warned GSK that its marketing for the breast cancer drug Tykerb is out of hand. Report

> GlaxoSmithKline bought over-the-counter marketing rights to Merck's statin drug Mevacor for an undisclosed price. Report

> India's Cipla and Akorn has signed a pact to develop an inhalation drug product. Report

> The feds have wrapped up their stock-option probe at Sepracor without taking any action. The SEC began looking into the way that Sepracor granted stock options in the summer of 2006. Report

> Vectura Group has received a €10 million milestone payment from Boehringer Ingelheim along with a five million euro equity investment. Report

> A new economic development initiative in Indiana hopes to offer more work for the companies providing services to the state's life sciences industry. Report

> Trimeris announced that it is the target of a patent infringement suit Novartis has brought relating to Fuzeon. Report

> Sosei has announced good progress in its collaboration to advance the early-stage SD118. Release

> Researchers have created a new breed of mice that are resistant to the most aggressive forms of cancer. Report

> A team of researchers blitzed the C. elegans roundworm with tens of thousands of chemicals and found 115 that prolonged their short lives. But one, the antidepressant mianserin, is now commanding all of their attention. Report

> Scientists have transplanted stem cells that create new blood into the bone marrow of mice, advancing a new process that could eventually cure autoimmune and genetic blood disorders. Report

And Finally… Officials in Brazil have finalized a $23 billion plan to support science and innovation, with biotechnology playing a leading role. Report

Indian developer inks R&D pact with Merck

Mon, 19 Nov 2007 06:59:57 -0500

China may have seized the spotlight in the Pacific Rim recently with a string of new research developments, but India's still a player. India's Nicholas Piramal has inked an R&D pact with Merck, agreeing to advance experimental therapies for two oncology targets selected by Merck in exchange for milestone payments of up to $175 million for each new drug. Nicholas Piramal will be responsible for taking new drugs from discovery to mid-stage trials, and Merck will cherry pick the therapies it likes the best for late-stage trials.

"This agreement furthers our strategy of building global alliances that expand and advance Merck's pipeline, especially in countries such as India with rapidly expanding drug discovery competencies," said Merv Turner, senior vice president at Merck.

- see this release on the deal
- here's the report from MarketWatch for more

ALSO: Eli Lilly, meanwhile, says it will invest $100 million in China's R&D through Lilly Asian Ventures. It's primary focus will be fledgling life science companies. Report

Related Articles:
China now leads India in ongoing clinical trials. Report
China surges past India in drug discovery work. Report
India ramps up biotech funding. Report

R&D spending going gangbusters in China

Thu, 15 Nov 2007 06:59:56 -0500

Everything drug related is going gangbusters in China. Last year, China grabbed $2.2 billion of the global action on drug R&D. By 2010, the country expects that to grow to $10 billion, two percent of the planet's total R&D budget. Time dissects the numbers for us, listing AstraZeneca, Novartis, Eli Lilly and GlaxoSmithKline among the leaders in the pharma world who are blueprinting some ambitious expansion plans. It's clear to see what's attracting the drug giants: Lower research costs, expert scientific help and a massive population suffering from the kind of big ailments that can spawn blockbuster therapies. It's also a growing market in its own right. China bought $13.6 billion in pharmaceuticals last year--and that's expected to double by 2010. Natch.

- check out the article from Time

Related Articles:
China surges past India in drug discovery work. Report
China pushes drug development as R&D soars. Report
China now leads India in ongoing clinical trials. Report
China's pharma market steams ahead. Report
Novartis maps $100M R&D complex in China. Report

ALSO NOTED: Lilly grabs rights to pain therapy; Study outlines billions in potential R&D savings; Takeda shares hit by FDA move

Tue, 30 Oct 2007 07:59:50 -0400

> Eli Lilly has agreed to pay India's Glenmark Pharmceuticals $45 million up front and up to $215 million in scheduled milestones for the North American, European and Japanese rights to the experimental pain therapy GRC 6211. Another $90 million is up for grabs for other approved uses of the therapy. Release

> A new study outlines how biotech and pharma companies could potentially save billions in R&D expenses. Report

> Shares of Sepracor surged more than 17 percent on the news that it would cut some 300 positions. Release

> Yesterday's news that the FDA wanted Takeda to halt high dosage studies of a key cholesterol-lowering drug took a 12 percent bite out of its stock value. Report

> The diagnostics company Genoptix prices its IPO shares at $17 apiece. Report

> Living Cell Technologies has raised $6.4 million of additional capital. Report

> On second thought, maybe Genentech won't restrict supplies of Avastin. This turnabout announcement comes after the company met with eye specialists who were hopping mad that patients might be forced to buy Lucentis at $2,000 per dose versus Avastin at $40. Report

> Chinese regulators have arrested 774 people over the last two months for violations of food and drug safety rules. They've also destroyed 1,000 tons of counterfeit products and instituted a new quality standard for pharmaceuticals licensing. Report

> An $80 million Emerging Technologies and Innovation Center planned for UMass Lowell will concentrate on nano- and bio-manufacturing research and is expected to play a role in moving life sciences companies from R&D into production. Report

> Pfizer vice chairman David Shedlarz could walk away with $43 million in benefits and deferred compensation when he retires later this year. Release | Report

And Finally... Researchers have completed an animal study that suggests placing mice on a buzzing platform for 15 minutes a day caused them to lose a significant amount of weight while improving bone structure. Report

In new approach, R&D units are spun off

Thu, 25 Oct 2007 06:59:56 -0400

In the old model for drug discovery, R&D is needed to provide a regular crop of new drug prospects to replace the therapies coming off patent. But that's not so in the generics world. Some of India's top generics companies are spinning off their R&D operations into separate companies. Ranbaxy Laboratories and Dr. Reddy's say that these spinoffs make more sense.

- read the report from the Financial Times

Related Articles:
Ranbaxy spins off R&D unit. Report
Ranbaxy touts R&D abilities in new discovery pact. Report
Dr. Reddy's make risky biogenerics move. Report

Ranbaxy spins off R&D unit

Fri, 19 Oct 2007 06:59:57 -0400

Ranbaxy, one of India's largest drug makers and a dominant force in the generic drugs business, is spinning off its R&D unit that will develop new medicines. The move will allow the drugmaker to expand beyond the generic drug market, and will remove millions of dollars from Ranbaxy's annual expenses. It will also mean Ranbaxy can compete on a global scale by making more profitable, brand-name drugs. And Ranbaxy certainly has a leg up with it comes to R&D costs. Developing new drugs in India is much cheaper, as the country has a large, inexpensive pool of biotech talent.

Ranbaxy already has programs for an original anti-malarial drug and treatments for oncology, respiratory, metabolic and infectious diseases. Details on the new company's structure will be ironed out by the end of this year and it will be listed some time in 2008. The planned spinoff will have an annual budget of $20 million to $25 million.

- see this release for more
- read the Financial Times article

Related Articles:
Ranbaxy touts R&D abilities in new discovery pact. Report
Ranbaxy reportedly near $100M generics deal. Report
Ranbaxy buys new European manufacturing hub. Report
Ranbaxy acquires GSK generic business in Spain. Report