The Hindu Business Line : Eli Lilly to focus on research tie-ups, patented drugs

TIE-UPS with major Indian pharmaceutical companies in the arena of drug discovery research and launch of hi-tech patented products is the way forward for Eli Lilly and Company (India) Pvt Ltd.

Speaking to Business Line, Mr Rajiv Gulati, Chairman and Managing Director, Eli Lilly, said, "Our company is globally led by research and my vision is to increase investments in the area of drug research substantially and enter into tie-ups with major research-led pharma companies. And that is possible only by having a strong Intellectual Property Rights (IPR) regime."

For a start, the company is already conducting clinical research in the country and invests close to Rs 10 crore each year. "I would like to see it growing by 3-4 times in the future," said Mr Gulati. On the drug discovery side, Shasun Chemicals is working on developing commercial processes of seven molecules.

"Shasun already supplies two bulk drugs (in the gastroenteritis and anti-tuberculosis segments) and now they are working on seven more. After the processes are developed, it is up to Eli Lilly to decide on whether or not to source the drugs from them," Mr Gulati added.

The company also has third-party tie-ups with Ranbaxy Laboratories Ltd and Sun Pharmaceuticals Ltd for manufacturing some of its products. It wants to make India the sourcing hub for several of its products.

On its strategy for the Indian market, Mr Gulati said that the company would be foraying into segments where the number of players is very few. "For instance, we are the only company that offers drugs Forteo, Xigris and Reopro for osteoporosis, sepsis and interventional cardiology respectively. Even in the insulin segment, there is Novo Nordisk and Wockhardt competing with us. And going forward, we will be launching only such products," he added. Hence, drugs for depression or anxiety are not going to be part of the company's portfolio for the moment as there are several players in these segments.

Meanwhile, Eli Lilly is now looking at launching its branded prescription drug used to treat erectile dysfunction, Cialis, (generic Tadafil) in the domestic market. However, the launch of this has run into a legal wrangle and the company is awaiting orders from a Kolkata court. "I can only say that we have the Exclusive Marketing Rights (EMR) for the product," said Mr Gulati. There are several generic versions of Tadafil available and the company would have to look at various options to stop domestic companies from marketing them.

The company, with a turnover of over Rs 140 crore, is however not looking at tapping the capital market in the near future. "Several of our employees have been given shares by the parent company as part of a stock option plan," Mr Gulati added.

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