Cadila to invest Rs 100 crore in oncology, R&D units

Cadila Healthcare plans to invest in excess of Rs 100 crore for setting up a facility for oncology products and a Research and development centre.

"We plan to invest over Rs 100 crore for setting up of manufacturing facility for oncology products and a research and development (R&D) centre in Ahmedabad. The investment in the oncology and R&D centre would be in ratio of 50:50," Pankaj Patel, chairman and managing director, Cadila Healthcare, said today.

Meanwhile, Patel said, with vertically integrated capabilities for generic drug development and low cost manufacturing, pharmaceutical companies of Gujarat are emerging strong in the field of generics and active pharmaceutical ingredients (APIs).

"The state boasts of integrated capabilities from concept to production for APIs and finished dosage formulations," he said at a presentation on investment in the pharmaceutical industry in Gujarat.

"Besides, high skills in chemical synthesis, process engineering and lower time to market at competitive costs makes the state an attractive base to produce generics drugs," he added.

Patel added that the state is well positioned to take a lead in biotechnology and clinical research with Lambda, Quintiles, Synchron, Clinsearch and B A Research providing clinical research services in the state.

Drawing parallels between Cadila Healthcare and Torrent Pharmaceuticals, Patel said, while the R&D pipeline of Torrent stands at 230 FTEs, Cadila has 240 FTEs.

Similarly, he said that both Cadila and Torrent have partnering alliances with multinational companies for joint research, conducting clinical trials and the like.

Terming Gujarat as the best investment location in Asia for the pharmaceutical industry, Patel said the new patent regime will open newer opportunities and challenges to the industry. However, with demonstrated capabilities in process research, R&D and biotechnology, Gujarat's pharma companies will be able to meet the new challenges successfully, he said.

Patel said spending on R&D by Cadila has increased from $2.9 million in 2000-01 to $14.8 in 2003-04. "Almost all major pharmaceutical companies have done great work in NCE research, non-infringing process development for blockbuster drugs and developing novel drug delivery systems," Patel said adding that this has led to advanced clinical development skills and alliances with MNCs for outlicencing.