Anil Dhirubhai Ambani Group?s big-ticket plans to foray into pharmaceutical distribution has probably become a non-starter. The company?s talks with the Pharmaceutical Wholesalers Association (PWA) for a joint venture entry into the drug distribution business has been hanging fire for a while. For the past six months, PWA has not received any communications from ADAG, which set up Reliance Health for its pharma foray a year ago, according to sources.

Sources said that the plan was to set up a joint venture initiative with a stake holding pattern of 60:40 between ADAG and PWA in the drug distribution segment. As reported by FE earlier, ADAG was also in talks with US drug retailer, the $80-billion Cardinal Health Inc, promoters of drug retail chain Medicine Shoppe, as part of its entry into drug distribution. FE had reported that prominent names in wholesale distribution, including industry association heads, would also be part of the project.

Dilip Mehta, president of PWA, confirmed that the talks were at a ?stagnant? stage but said that the primary discussions with ADAG had taken place sometime back. ?We have not received any communications regarding the project from ADAG in the last six months,? he said. When contacted, an ADAG spokesperson said, ?Our business plans continue to be on track and will be announced at an opportune time. We have nothing more to say at this point in time.?

Last year, a top executive of Reliance Health Ventures, who headed ADAG?s talks with Cardinal, had quit the company, blaming ADAG?s slow pace in implementing the plans. However, an ADAG spokesperson insisted that this did not have any adverse impact on their plans. He said, ?Individuals don?t dictate business plans at Reliance. Do not link up our business plan with individuals.?

Earlier, ADAG had shown interest to acquire a major stake in the newly formed public limited company by All India Organisation of Chemists and Druggists (AIOCD), the pharma body that represents more than 5 lakh chemists in India.

Meanwhile, elder sibling Mukesh Ambani, who has been operating in the biotech sector with Reliance Life Sciences (RLS), is betting big in the generic space through its wholly-owned subsidiary, Reliance Pharmaceuticals Ltd (RPL). The first phase of RPL?s Jamnagar plant is expected to be commissioned by May 2008. Last year, RLS had acquired 74 % stake in the UK-based biotech firm GeneMedix. It had also invested about $10 million in US-based global investment management firm MPM Capital?s BioVentures IV fund.