Torrent may rope in VC firms for R&D

Torrent Pharmaceuticals, which has made significant advancements in drug research and development by out licensing promising compounds and outsourcing of research services to multinational majors, is likely to tie up with a venture capital company for guiding one of its lead molecules through the process of advanced development to a stage of clinical application.

Highly placed sources in the company said that it's strategy is to take the lead compounds to clinical trial stage that involves studies on a global scale. Since such studies involve high costs and risks, it prefers to rope in venture capital companies for such projects on a rights sharing or profit sharing arrangement.

"One of our lead compounds in the cardiovascular segment would soon enter clinical study phase two. The company wanted to take this compound to human trials on its own. Once the company could take the drug candidate to the advanced development stage, there is more certainty about the molecule turning out to be a success.

"This would help the company to negotiate better with the licensing companies or even otherwise it gives more confidence to the company to take it to commercialisation," company sources said.

"Currently it is very early to reveal the details of the likely collaborations with the venture funds. Our lead molecules would enter the human trials by 2006-07. By the time we will be ready with such options," the sources said.

Torrent's plan to tie up with venture capital companies signifies the new trend among the Indian research based pharmaceutical companies to support the highly capital intensive and risk-ridden R&D programmes.

Recently, Dr Reddy's Lab had roped in ICICI Venture and Citigroup Venture Capital to form an integrated drug development company Perlecan Pharma with an equity capital commitment of $52.5 million (Rs 230 crore) to fast-track drug development activities.

DRL had also tied up with ICICI Venture in a $56-million (Rs 245 crore) deal for development, registration and legal costs of its ANDAs for generic drugs to be sold in the US.

The pharmacology department at the Torrent Research Centre is now actively pursuing studies on 7 different research projects-one in cardiovascular, four in metabolic disorders and related complications, one in central nervous system and one in obesity. A number of patent applications have been filed in USA, under PCT, EU, Japan, Canada, etc. based on these projects.

One of the anti-arrhythmic drugs TRC 303 has been approved for Phase-I & II clinical studies by the Drugs Controller General of India. Application for phase I clinical trial for an anti-angina compound, TRC-282 would be made shortly.

Currently, Torrent Pharma is also in the process of expanding its R&D facility to cater to regulated markets. The expansion in R&D infrastructure and increased focus on R&D will strengthen its product pipeline involving an investment of Rs 100 crore.

Torrent had recently signed an agreement with Novo Nordisk to establish a new and dedicated formulation and packaging facility for insulin. The company also has a research collaboration agreement with AstraZeneca, which aims at discovering a novel drug candidate for the treatment of hypertension.