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Piramal Life lines up Rs 200 crore for new drug research

15 Oct 2009 Evaluate

Piramal Lifesciences, the drug research company of the Piramal Group, will invest Rs 200 crore in the next two years for developing new medicines, according to sources. An investment in new drug development research (NDDR) is a risky affair, but pays rich dividends, if company succeeds in developing a new popular drug. Few Indian pharma companies such as Sun Pharma and Piramal Healthcare had hived off their research division into separate companies to improve the balance sheet of the parent company. Annually, it invests about Rs 100 crore.

 

On Monday, it has reported a net loss of Rs 31 crore for the quarter ended September 30. The net sales stood at Rs 2.5 crore for the quarter. It expects to launch its first drug by 2011-12. But, it is not possible to guess on when it can break-even because even after launch drugs can fail. Typically, the process of new drug development takes about 10-12 years and costs about $1 billion globally. In India, the costs are significantly lower, and the company will try to develop cancer drugs, which are less expensive, to develop at about $100 million.

She added that the company will also have an additional revenue stream from the launch of its phythopharma and herbal products over the next 3-4 years. At present, the company has one molecule (a head and neck cancer drugs) and four phythopharma molecules at the phase-II trials stage. It would consider out licensing non-cancer molecules to global pharma companies, but only after completing the initial phase-II trials.

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Piramal Phyt-Amalga Share Price

22.55 0.00 (0.00%)
10-Dec-2019 18:01 View Price Chart
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Company Name CMP
Sun Pharma Inds. 1652.00
Dr. Reddys Lab 1235.20
Cipla 1211.30
Zydus Lifesciences 923.10
Lupin 2312.35
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