City based pharmaceutical major Shasun Pharmaceuticals Ltd has entered into a joint venture with US based Nanoparticle Biochem Inc to explore opportunities in the field of Nanotechnology.
As per the joint venture the company will invest close to $2-3 million over the next 18 months period, a top company official said.
"This is the company's first offshore tie-up, which paves way for the company's foray into Nanotechnology", Shasun Pharmaceuticals Managing Director S Vimal Kumar told PTI.
"Nanotechnology is gaining ground and with this JV we are getting access to it... ", he said.
"Research requires huge amount of investments.. We may require to invest $2-3 million over the next 18 months period for the development of lead molecule NBI-29 for prostate cancer", he said.
He said "NBI-29" is the molecule developed by Nanoparticle Biochem, Inc for the treatment of Prostate Cancer.
The company has entered into 50:50 JV with Nanoparticle Biochem, Inc (NBI) which is partly owned by University of Missouri, Colombia.
"They may have so many tie-ups with foreign companies... but this is the first time that a University has selected an Indian pharmaceutical company", he said.
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The two parties have exchanged agreements last Friday and have floated a new company 'Shasun NBI LLC' which would handle the operations on the development in the field of Nanotechnology.
As per the agreement, the newly formed company would focus on the developent of NBI's lead molecule NBI-29 for the treatment of prostate cancer, Kumar said.
"This will help in accurately attacking the place where the tumour is present in the human body", he said.
"Initially preliminary testing would require 18-24 months, then we may need to do similar trial on human beings and after getting the approval from Food and Drug Association (FDA) the end product may hit the market after 7-8 years", he said.
He said the University of Missouri was one of the six labs in USA to be part of a research on 'Nanotechnology in Cancer'.
When asked if the company would have an opportunity to explore other areas in the treatment of Cancer related diseases, he answered in affirmative.
"Our focus is only in Prostate Cancer (PCA) and we also saw the potential it has... But with the knowledge we gain we have opportunities in other key cancers like breast cancer, lung cancer, oral cancer...", Shasun Chemicals and Drugs Chief Financial Officer Somnath Iyer said.
According to him, the Prostate cancer market was estimated to reach $7.7 billion by 2015 from $5.2 billion.
On the future outlook, Kumar said they were a growth of 15-17 per cent this year.
"We reported Rs 800 crore last year (2009-2010).. This year we are expecting it as per industry lines... May be 15-17 per cent should be reasonable..", he said.
He attributed the growth would mainly driven by the company's Active Pharmaceutical Ingredients (API)business.
According to him 40 per cent of the revenue comes from API, 50 per cent from CRAMS and 10 per cent from the biotechnology business which the company forayed in 2008.
He said the company's tie-up with UK based company for providing anti-epilepsy drug for treating Hepatitis C virus was expected to hit the market by April 2011. "It is in the approval stage from FDA.. It may hit by April 2011", he said declining to elaborate.
The company currently has three manufacturing facilities in India and one in the United Kingdom,he added.