Glaxo India's official spokesperson said that the effort with Affymax would essentially involve chemical synthesis of compounds, though details on this front could not be ascertained.

Analysts say that the move is indicative of the developmental capability of the Indian subsidiary and the growing confidence of the overseas parent in the Indian arm. ``Glaxo Wellcome Plc has in-principle accepted that an R&D centre can be located with advantage in India and these moves only strengthen the belief that this may be a reality, subject to India's commitment on the patent's front,'' an analyst with an Indian stock-broking house said.

Glaxo India's R&D effort, concentrated at Thane, essentially comprises two streams -- pharmacy and chemistry development, with scientific manpower of approximately 29.The Indian arm has already successfully undertaken process improvements in the production of drugs like ranitidine, cephalexin and betamethasone.

The company's latest annual report adds that ``emphasis will continue to be laid on main areas and particularly on the development of new technologies for betmethasone, clobetasone, clobetasol, cephalexin and ranitidine and supportive work to Glaxo Wellcome UK.''

On other emerging R&D opportunities, analysts say that Glaxo India could capitalise on its process strengths by assisting the parent company to develop and improve such processes before the British parent seeks a patent for the drug. ``Glaxo could help improve the processes, thereby making it difficult for pirating,'' they added.