Glenmark goes for Swiss R&D

To build a team that would be engaged in research & in coordinating clinical development.

At a time when the world's pharmaceutical companies are setting up research and development (R&D) centres in countries like India, where the cost of drug development is much lower than in the West, Glenmark Pharmaceuticals is swimming against the stream.

The Rs 381 crore Mumbai-based company is planning to set up an R&D centre in Switzerland, one of the most high-cost locations in the world.

Glen Saldanha, chairman and managing director, Glenmark Pharmaceuticals, explained to Business Standard why his company was looking at Switzerland: "While Switzerland is relatively expensive, certain skills are available in that country that can complement our present skills repertoire in R&D."

Saldanha added that his company was in the process of building a team in Switzerland that would be engaged in research and in coordinating clinical development.

"This team will work closely with third-party clinical research organisations and Glenmark's own research centres. The Switzerland centre will complement our existing skills in R&D and also build capacity to examine new areas of research," he said.

Glenmark plans to invest about $3 million (about Rs 13 crore) in the centre over the next few years. "Internal accruals will adequately cover the fund requirement," Saldanha said.

The company has an R&D budget of roughly Rs 50 crore for 2004-05. Saldanha says the budget will go up by 10-20 per cent in 2005-06. The company employs over 100 scientists who focus on molecules for asthma, diabetes and obesity.

Glenmark's $190 million (Rs 817 crore) licensing deal with the US-based Forest Laboratories to develop PDE4 inhibitor GRC 3886, a compound developed by Glenmark, was among the biggest in the Indian pharmaceuticals industry.