Pharma firms rush for in-licensing deals

Posted AtBusiness-Standard

Domestic pharma companies are rushing to clinch in-licensing deals with global players with a view to stemming loss of business and warding off any patent-related troubles.

Except for multinational pharmaceutical players and a few local giants like Ranbaxy, most medium-to-large pharma companies have entered into licensing agreements with foreign counterparts. The companies that have entered into such deals include JB Chemicals, Lupin and Nicholas Piramal.

An in-licensing deal allows a domestic pharma player to manufacture and sell products of a foreign company in India officially without any kind of patent infringement.

It is a win-win situation for both the parties: the domestic company gets the technological knowhow and the foreign ally can get a toe-hold in the complex Indian market.

This model enables the domestic company to introduce a molecule or a formulation with the right technology in India and the foreign player to get a credible local partner. With duplication and infringement becoming next to impossible, this gives a vast market to the partners.

Panacea Biotec has in-licensed a peptide-based technology for alopecia management from the National Institute of Health of the US.

The patent-protected technology for actin-binding peptide/ poly peptide stimulates hair growth and regenerates lost hair follicles.

Ranbaxy Laboratories has signed such a pact with J B Chemicals to market the herbal range brand, Doktor Mom, in the Romanian market.

Nicholas Piramal has struck deals with global players such as Boehringer Mannheim, Allergan, Boots, Chiesi Farmaceutici, Biogen Idec, Genzyme, Ethypharm and Laboratories, Pierre Fabre, besides working closely with Aventis and Novartis.

Elder Pharmaceuticals has partnered in-licensing with 25 international companies.

Some of the in-licensing partners of Elder include Haw Par Healthcare (Singapore) for Tiger Balm, Blistex Inc (USA) for lip care products, Zambon SpA of Italy for Fluimicil (anti-ashthma), TRB Chemedica of Switzerland for Artrodar (anti-arthritis), Covex (Spain) for Citicholine (cerebro neuropsychiatry segment) and Ferrer (Spain) for Vimpocetine (cerebro neuropsychiatry segment).

January 12, 2006