The Hindu Business Line : Merck talking to 10 pharma cos for tie-ups

Hyderabad, Feb. 2 Global pharma major Merck & Co Inc is planning to expand its research collaboration with Indian companies and is currently in talks with 10 major and minor firms.

“While I cannot name the companies with which we are talking, I can say that the discussions are highly promising and something concrete may happen soon,” Mr Swami Subramaniam, Director of Licensing and External Research (India), Merck & Co Inc., told Business Line here.

He, however, declined to give any time frame. The companies included some “small” companies in Hyderabad. “We are not interested in people engaged in contract research and manufacturing services but are looking for partners in innovation,” he said.

INVESTMENT

Mr Reid J. Leonard, Executive Director (Licensing & External Research), Merck, said the global financial crisis is not going to impact Merck’s investments and R&D partnerships in India.

“Merck has a sound cash balance. The financial structure of Indian companies provides us good marrow to forge partnerships,” he said.

At present, the US-based Merck has four R&D collaborations in India with Advinus, Nicholas Piramal, Ranbaxy and Orchid.

“These four are the examples in which Indian companies set a new paradigm for partnerships,” he said.

Merck is scouting for licensing arrangements of marketed products with companies operating at the regional/country level, he added.

FOCUS AREAS

One of the focus areas for Merck is small interfering Ribunuceac acid (siRNA), Mr Leonard said.

siRNA is a part of RNA interference (RNAi) which helps determine what genes are active and how active they are in living cells.

“Collaborations are actively sought in this area,” he added. Other focus areas of Merck include oncology, central nervous system, cardiovascular, obesity and diabetes.

The pharma companies in the US which are dependent on debt and private equity are finding it very difficult to access funding, he said.

“It is reported that 50 per cent of biotech companies in the US will disappear due to the economic crisis. However, this is also a good sign because the innovation would be consolidated as intellectual property will not die down,” he added.

According to Mr Subramaniam, the impact on Indian pharma industry would not be there in the long-term as there would not be any dip in the generic exports, a prime strength of companies here.