"We are determined to put the country on the world map in pioneering drug discovery initiatives, and these first compounds will take us there," a company release quoting Dr Reddy's group chairman K Anji Reddy said on Monday.

Scientists at the foundation have synthesized and tested `in vitro' over 300 molecules belonging to different chemical classes and found promising compounds which are active, foundation president A Ventateshwarlu said.

The two new compounds belong to a new class which are active against "vancomycin resistant enterococci" and "methicillin resistant staphylococus aureus."

According to company sources, the foundation proposes to license these compounds to foreign partners for further development into new drugs. It had similarly licensed two anti-diabetic compounds to NovoNordisk earlier. However, company officials were unable to name the potential licencee for the two new compounds.

On the anti-cancer drug discovery program, the foundation has indentified several camptothecin analogs from over 150 compounds which have been synthesized and screened. After conducting preliminary tests it felt that the compounds in this series have great potential and filed IND application to further conduct phase 1 trials on one of the compounds, the release said. The research foundation has also identified a new lead compound which will undergo metabolism to a lesser extent than a leading new proton pump inhibitors (PPI). The compound will become a valuable addition in the therapy of gastro-esophageal reflux disease (GERD), the release added.