Industry sources say that the dossiers for the products concerned are ready and the Indian partner will supply these formulations using "non patent- infringing" processes.

Nicholas Piramal is expected to rake in signficant royalty inflows once the arrangement is operational. Norton's US-based affiliate is expected to handle the filing of the abbreviated new drug application (ANDA), a pre-requisite to enter the generics market.

Significantly, Norton is believed to have entered into a similar arrangement with RPG Life Sciences, formerly Searle India, though details on the deal could not be got. The RPG group's official spokesperson declined to comment on the issue.

RPG LifeSciences, which commenced manufacture of products like doxorubicin (used in an anti-cancer drug) and cyclosporin (an immuno suppressant) earlier this year, is also looking at strenghtening its alliance with American partner, Cytozyme Laboratories. The Indian company may manufacture certain active ingredients for Cytozyme in India.

Nicholas Piramal and the RPG group join a string of Indian pharmaceutical companies working in tandem with an international player to tap the growing generics market. The Mumbai-based Cipla is already working on abbreviated new drug applications (ANDAs) in collaboration with international generics firms for a range of products like flutamide (for advanced prostatic cancer) and felodipine.

Significantly, there is considerable market speculation that Norton is set to zero in on a string of similar alliances including a strategic equity tie-up with the Piramal group. Indications are tht Nicholas Piramal is expected to rope in two strategic equity partners into Global Bulk Drugs andFine Chemicals (GBDFCL), its 100 per cent subsidiary company.

Nicholas Piramal (NP) has, in its latest annual report, said that "it is at an advanced stage of negotiations with a North American company with a high level of expertise to come in as a partner in GBDFCL". The company is working towards upgrading its manufacturing units to conform to US FDA standards.

INSIGHT
Move makes sense

The current arrangement between Nicholas Piramal and the UK based Norton Healthcare is one of the many that the Indian company has entered into. The company is likely to benefit from the fact that the drugs covered under the arrangement are likely to go off-patent as early as next year. Thus the lead time for benefits to flow in will be less.

With the help of the MNC in filing the ANDAs, Nicholas saves on time and money. This strategy of entering the international generic market through a foreign partner is not very common among Indian companies, which to some extent restricts their market strategy inthe foreign country.

-- Shishir Asthana