The Hindu Business Line : `Pharma industry not keen on out-licensing molecules'

HAVING experienced several disadvantages in the out-licensing of molecules to multinationals for further clinical trials , the Indian pharmaceutical industry is not keen anymore on this business model, according to the Chairman of Dr Reddy's Laboratories Ltd, Dr K. Anji Reddy.

Instead, the Indian pharma industry expects to witness a boom in clinical trials, with the cost trials set to come down drastically in the next 3-4 years and the country would have in place good clinical trial practices, Dr Reddy said.

He was addressing reporters here on Thursday to announce the details of two concurrent international shows on biotechnology and pharmaceuticals being organised by ChemTech Foundation in alliance with the Ministry of Chemicals and Fertilisers and the US Commercial Service next month. The five-day shows, ChemTech World Expo-2005 and Pharma World Expo-2005, will be held in Mumbai from February 8 in Mumbai.

Citing the example of his own company on clinical trials, Dr Reddy said, "We have faced a lot of disadvantages in the business model of out-licensing of molecules. We also had some serious setbacks in the process. We had out-licensed the molecules to multinationals, since we had no money to carry out such prohibitively expensive clinical trials on our own."

Stating that the company has learnt enough from these experiences, Dr Reddy said his company had for the last time out-licensed its molecule in 2001 and has then onwards decided not to out-license any of its molecules. "We now plan to go in for clinical trials on molecules on our own. We are also considering a proposal to initiate clinical trials on our molecules from overseas locations. We expect to expedite our drug research activities in China in the next couple of years," Dr Reddy said.

The Chairman and Publisher of Jassubhai Group, Mr Jasu Shah, said the pharma conference would deliberate on growth dynamics, new horizons, emerging opportunities, new drug discoveries and technological advances for research and manufacturing.

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