For the Indian pharma industry, the year 2007 was eventful. The move by domestic pharma firms to hive off their R&D arms was a major trend. Sun Pharma hived off its innovative R&D arm into a new company, Sun Pharma Advanced Research Centre (SPARC) and listed it on the bourses, while Nicholas Piramal, which also hived off the R&D arm, will list the new company too. Glenmark Pharma, on the other hand, hived off its generic business to form Glenmark Generics (GGL), which would also be listed on the stock markets next year. Ranbaxy is hiving off its R&D arm too, although the company is yet to disclose its product pipeline. ?Separate R&D facilities for the development of new chemical entities would not put pressure on the company?s balance sheet. It would also help unlock capital and attract funds to support research activities,? the company?s CEO & MD Malvinder Mohan Singh said.
Indian majors were not so active on the mergers and acquisition front this year, as compared to smaller and mid-sized firms, although these deals were comparatively small. In July, Elder Pharmaceuticals acquired 20% stake in the Neutra Health of UK for $11.55 million and 51% stake in Biomeda Group of Bulgaria in an all-cash deal worth euro 5 million. Plethico Pharma?s buyout of US-based Natrol Inc for about $81 million and Strides Arcolab?s acquisition of Italian firm Diaspa?s fermentation assets, were some of the other buyouts. Apart from Wockhardt?s buyout of Negma and Glenmark?s acquisition of Czech company Medicamenta, there were no big M&A deals in 2007. Sun Pharma?s acquisition of Israel’s Taro Pharmaceutical for about Rs 1,800 crore has not yet been completed as it awaits shareholders’ approval.
On the drug discovery front, Glenmark has signed various deals, including purchasing two new biological entities (NBEs) from Chromos Molecular Systems and with Eli Lilly to sell the rights of a portfolio of molecules to the MNC. Nicholas Piramal has signed R&D collaboration agreements with Merck & Co Inc. and Eli Lilly to develop and commercialise a select group of the company?s pre-clinical drug candidates.
In August, the Madras High Court dismissed a petition filed by Swiss firm Novartis challenging the Patents (Amendment) Act of 2005, under which the company filed a patent application for Glivec.
On the patent litigation front, even though the number of para IV ANDAs (abbreviated new drug applications) filed by Indian firms in the US are increasing, Indian firms that opted for out court settlements are also on the rise.
The industry has opposed the draft national pharma policy that plans to bring 354 essential medicines, besides the existing 74 drugs, under price control.
Ranjit Kapadia, an analyst with Prabhudas Liladher, says, ?The domestic pharma industry still enjoys a healthy growth but may slow down in CY08, if the government increases the span of DPCO to cover more products.
