Cato Research Neuland India, a joint venture of Neuland Laboratories Ltd and Cato Research of the US, has made an initial investment of Rs 5 lakh to enter into the clinical trial business. The human trials are expected to commence shortly.

Neuland Labs entered into a joint venture agreement with US based Cato Research to form Cato Research Neuland India in mid 2008. Under the JV agreement, Neuland has 70 percent stake and CATO holds the remaining 30 percent.

The JV is expected to conduct between 10 and 20 trials annually. Although, the company would initially conduct only phase-II and III trials, it will enter phase I and IV trials in a year or two. Most of the investments would be used as operating expenses for the new company. The operations are not expected to be very capital-intensive, D Saharsh Rao, president, contract research, Neuland Laboratories Ltd told Pharmabiz.

"All the trials will be done for Cato's clients which include some of the top pharmaceutical players operating in areas such as diabetes, cardiovascular diseases, dermatology, oncology and others," he added.

Cato would provide business development, personnel training, senior management recruitment and implementation of Standard Operating Procedures (SOP) guidelines. In collaboration with Cato BioVentures, the venture capital affiliate of Cato, the company will also provide CRO services including clinical studies, data management activities, statistical analysis, as well as regulatory services. The joint venture will further allow Cato to expand its international presence.

Adding India into Cato's international network will increase its ability to conduct multinational clinical trials and provide a wide range of CR services in the international arena. With Cato Research and Cato BioVentures, the company can accelerate development and commercialization of several new innovative products.

"Our strategic interests are well aligned, as each party offers unique strengths to make this arrangement successful. This JV takes us one step closer towards our objective of becoming an end-to-end service provider for the pharmaceutical industry," said the president of contract research at Neuland.

The company which is a leading manufacturer of active pharmaceutical ingredients has been present in the regulated markets of US and Europe and recently entered the Japan after it bagged the approval from Pharmaceuticals and Medical Device Agency (PMDA) of Japan. In addition to all these, the company has also forayed into Peptides, making it the few companies in India to do so.