Zandu Pharma managing director Dr KM Parikh told The Financial Express

the the company had acquired the rights to this product from the Rush University, Chicago and both partners were working jointly on this project. Zandu has already manufactured the ``parent substance'' and was conducting pre-clinical work on this product. The original identification and laboratory work was done by Rush University.

The project, it is estimated, could need an initial investment of around $5 million and Zandu was working on the option of funding assistance from government agencies, among other sources. The project, if successful, could entail a smallroyalty outgo to the Chicago-based institution.

The Rs 116-crore Zandu Pharma has already received US FDA approval for conducting investigative clinical trials in American hospitals for a potential cure for Parkinson's disease. Parikh said that such trials normally involve 100-300 patients and while Zandu plans to develop its own set-up there, it may also seek the assistance of contract research organisations (CROs).

Zandu's new drug for Parkinsons, HP-200, has already been approved in India and Parikh claims that he has "no doubt" the outcome of the US trials would be "100 per cent positive". Once the drug is approved, Zandu could examine the option of assigning the marketing rights for the product to an overseas company.

The Indian company is also working on several new drugs including those for the treatment of diabetes, diarrhoea and plans were also afoot to move into the ayurvedic veterinary segment, besides the cosmetics and toiletries segment.

On whether the promoters could consider a merger ofassociate company, Zandu Chemicals with Zandu Pharmaceuticals, Parikh said, "We have not thought of it but we may consider it". Zandu Chemicals was established to manufacture bulk drugs and intermediates and is essentially involved in the exports business. The company's products meet the specific standards of key pharmacopoeias.

Zandu Pharmaceuticals has an investment of Rs 14.50 lakh representing 1,45,000 equity shares of Rs 10 each (representing 49.64 per cent of the total paid up capital) of Zandu Chemicals.