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Semler Research Centre eyeing potential buyouts abroad
Nandita Vijay, Bangalore | Saturday, May 8, 2010, 08:00 Hrs  [IST]

Semler Research Centre, a full service clinical research organization primarily in the area of bioanalytical / clinical studies, as well as formulation services, will tread the inorganic path to build its business in India.

In order to reach a good size and to build synergy the company will be looking at options of acquiring companies in the west. “Our focus would be in the area of some high end service layers in drug development, proof of principle capabilities, biometrics, medical writing, pharmacovigilance etc. We need to look at companies which will align our business,” Dr Krathish Bopanna, president and executive director Semler Research Centre told Pharmabiz.

“We have an aggressive growth plan and this year will be a crucial year to reach critical mass. We are confident this can be achieved with our current backlog. Our plans to grow organically will be supported by internal accruals but will scout for investments to pursue inorganic growth,” he added.

Currently, Semler is working in South Africa and UK for GMP and validation services on a multi-year contract project. The company will take up some key formulation projects on profit sharing and fee for service model.

“Its personnel strength of 100 will increase by 70 per cent during end of this fiscal. The company’s non-billable resources will be kept below 6 to 7 per cent initially and we would like to lower this as we grow,” he said.

Semler had inked an agreement with Notox, Netherlands and has commenced assignments which is providing reality on its pipeline. Considerable enquiries are generated, he said.

Clinical research will grow at a reasonable pace Visible trends of project-to- programs conducted in India covers cardiovascular, metabolic disorders, oncology and autoimmune diseases. Western countries are looking at India as a trendsetter for running huge programs. However on a global scenario pipelines are effected badly and cost of development has increased substantially. Generic drugs are making way into the market and there will be a change in which big pharma will pursue generics in their portfolio, stated Dr Bopanna.

However, competency development and scalability are issues. “Until we find a model, cost competitiveness will be a challenge in India & Asian Countries. Some of the major players are looking at Asian market more realistically in the last three years. Asian markets will be a key indicator for the success or failure of the drug. Speed to market will be an issue and it is important that pharma companies need to shorten communication and decision making process. Developmental costs will be a challenge even for big players. Human capital will continue to be the biggest challenge in India. Utilising available intellectual talent will be the key driver for the success for companies,” said Dr Bopanna.

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