Orchid ends molecular bio research JV in US

Orchid Chemicals & Pharmaceuticals has terminated its molecular biology research joint venture - Gene Arrays Inc, in the US.

The research joint venture was formed with a US-based biotechnology scientist two years ago. The Maryland-based company specialised in gene sequencing and DNA-based research in the field of cancer and metabolic disorders.

Orchid invested about a million dollars in the joint venture.

However, after the termination of the joint venture, research assets and the equipment bought with the funding provided by the company are being transferred to Orchid's R&D facility in Chennai.

The company has already signed a termination agreement to enable the closure of the venture and transfer of work.

C B Rao, deputy managing director, Orchid Chemicals & Pharmaceuticals, told Business Standard that the company earlier entered into the joint venture arrangement to have a research entity specialising in molecular biology.

"As the skill sets and market opportunities for this sunrise kind of activity are concentrated in the US, the JV was set up as an exploratory venture to familiarise Orchid's discovery activities with the technologies and developments. Upon the development of the three DNA libraries, these are being transferred to our R&D here, which will enable the company's research in the areas of cancer and metabolic disorders," he added.

Orchid would now take it forward at its Indian facility along with its ongoing research in the areas of diabetes and oncology.

The company sources said that it will put a further investment in the Gene Arrays Project to take it forward.

Meanwhile, Orchid is also planning to transfer its research and intellectual property assets in another similar joint venture - Biotechnological Chemical Development Ltd, which was set up in the UK.

However, the UK joint venture was a limited time horizon project to develop and assimilate select peptide technologies. Currently, Orchid has a manufacturing joint venture in China - NCPC Orchid Pharmaceuticals. This is a 50:50 joint venture with NCPC to manufacture sterile cephalosporin APIs.