US-based Indigene Pharmaceuticals Ltd would be setting up a unit in Hyderabad next year. Dr Vaman Rao, Chairman and CEO of Indigene, told Pharmabiz that initially an R&D facility would set up and at appropriate time the company would start manufacturing activity. To start with, the company proposes to invest $2 million.

Indigene Pharmaceuticals, a mega project which is still under development at Hopkinton Massachusetts, USA, is based on plants and natural products using its own proprietary multiplex validation technology. Using this technology, the company would develop molecular compounds as superior medicines for the worldwide markets.

He said the objective was to pursue alternative approaches to develop new medicines for unmet medical needs. "We will try to rapidly validate the therapeutic efficacy of our products and establish clinical proof. Thereafter, we will partner with leading pharmaceutical companies for further development and commercialisation," Dr Rao said.

The company focuses on metabolic, CNS (central nervous system), psychiatric and infectious diseases. At the Hyderabad unit, research would be done on CNS, diabetes and cancer, besides clinical trials. The plan is to eventually deliver plant-derived prescription and OTC medicines which would be safer and cost-effective.

Asked whether the R&D facility would be set up at the CI Knowledge Park, Dr Rao said talks were at the initial stages. Besides, he would require clearance from the Foreign Direct Investment Board (FDIB).

After successfully establishing the Hyderabad unit, the company would expand its activities to Bangalore. Dr Rao, a native of Hyderabad, had his PhD in Synthetic Chemistry from Central University. Going to the US in 1987, Dr Rao worked on synthesizing Bactroban, which is currently being marketed by GlaxoSmithkline.

Dr Rao presented a paper on " Situation Analysis of Global Pharma -Opportunities for Biotech/Biopharma Companies" at the International Knowledge Millennium Conference 2002. He said the leading global pharmaceutical companies were facing serious challenges because of the failure of their business models. The pharma industry had been the best performing of the knowledge-based industries, giving about 18 per cent return over the past few years. However, it would not be possible to sustain the growth rate in the years to come due to manifold reasons such as limitations of the industry's merger and acquisition strategy, the collapse of pricing leverage n Europe and the US, increased generic competitions, hostile customer attitude and innovation being at all-time low. Only 15 new molecular entities were approved in the US in 2002 as against 53 in 1996.

Dr Rao emphasized that the current challenges of the pharma industry would result in its increased reliance on Biotech/Biopharma companies, and that India should focus on fully availing this opportunity to get into the global markets. To create a start-up company was challenging but it would be rewarding and could generate significant value for the society by providing superior medicines that would be safer and cost-effective, and could contribute several other tangible and intangible benefits.