Almost three years after Eli Lilly ($LLY) inked a pact agreeing to pay India's Zydus Cadila up to $300 million based on its ability to advance new cardiovascular drugs in the pipeline, the deal appears to be headed for the rocks, according to the Economic Times.
Citing unnamed sources familiar with the situation, the Indian newspaper noted that the two companies appear to be diverging on development strategies and increasingly divided by the rising cost of clinical studies. One of the primary factors behind the pact was Lilly's interest in gaining low-cost support for its drug development efforts, but Indian biotech companies have had a long and troubled record when it comes to advancing pipeline projects. A failure here would add another black mark to the subcontinent's record.
"Indian companies are far behind when it comes to drug discovery, maybe by 2013 we might see some light at the end of the tunnel." Centrum Capital's Ranjit Kapadia tells the Economic Times. Neither company responded to the paper's queries.
- here's the story from the Economic Times
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