The Hindu Business Line : ‘Demerger will put drug research on fast track’

Of NPIL’s 13 molecules that are transferred to the new research company, four compounds are undergoing clinical trials, where the compound is being tested on humans, while the rest are in pre-clinicals, said Mr Ajay Piramal, NPIL’s Chairman.

The compounds are in oncology, diabetes, inflammation and infectious diseases segments.

“Our scientists are working with the dream of producing the country’s first global medicine,” said Dr Swati Piramal.

Explaining the company’s strategy, Mr Piramal said, promising drug molecules would be developed up to Phase II or the proof of concept stage, and in niche compounds NPIL would seek to commercialise the product on its own.

“It is better to run with our own candidate,” he said in segments like oncology that involve fast-track regulatory approvals on promising molecules, besides less marketing.

This year NPIL’s research spend will be Rs 70 crore, while the innovative research company will spend Rs 140 crore on research, he told Business Line.

The demerger will not see adverse income tax-related impact, he said, as NPIL has its operations in tax-free zones like Baddi.

Dr Somesh Sharma, NPIL’s Chief Financial Officer, will head the new research company.

Outlining the company’s robust pipeline, he said, it consists of a promising oncology medicine that targets multiple myeloma; another medicine for patients resistant to Novartis’ cancer drug Glivec; a rheumatoid arthritis drug and an anti-fungal product are also part of the pipeline. The company seeks to take a decision by the year end on how to market the anti-fungal product, he said. The pipeline consists of products going into clinics till 2009 and by 2010 the first product will hit the market, he added. About 300 scientists will support the innovative research, with about 100 continuing with NPIL’s generic research.

Comparing NPIL’s plans to Sun Pharma’s demerger and listing of it’s research company last month, an analyst said that the total market capitalisation of the innovative and research companies have not changed post demerger. But it’s early days yet, he added, as the product pipeline bears fruit and generates more investor interest.

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