BIORx in the news

Mayne Pharma Group inks licensing deal with Indian pharma

Fidelity Growth Partners injects Rs 400 crore in medical technology firm Trivitron Healthcare

Five Indian cos make it to Forbes’ list of 50 most innovative firms

Venus Remedies gets patent from Mexico for antibiotic

November 2012

DEAL DYNAMICSMitsui in talks to invest Rs 250 crore in Claris Diversified Japanese conglomerate Mitsui is in talks to invest Rs 250 crore in Ahmedabad-based Claris Lifesciences, one of the largest sterile injectables pharmaceutical companies in India with a market presence in 91 countries.

People familiar with the development said that the Japanese group’s healthcare company might pick up stake from private equity players invested in Claris or invest in a joint venture that its promoters might float.

Mayne Pharma Group inks licensing deal with Indian pharmaMayne Pharma Group (ASX: MYX) has signed a licensing and distribution agreement with India’s Intas Pharmaceuticals for a large range of injectable products for the Australian market. Mayne will initially gain rights to 11 hospital products with a market value of around $73 million per annum.

The company expects to file these products with the Therapeutic Goods Administration (TGA) during the 2013 calendar year.

Mayne has also secured a right of first refusal for the exclusive distribution of another 30 pipeline injectable products across a range of therapeutic areas with current market sales of $140 million per annum.

To date, there are no generic equivalents to 15 of these pipeline products and the company expects several of these will be the first generic versions approved.

All products will be developed and supplied by Intas from their TGA- and US Food and Drug Administration- approved facilities.

Intas is one of the leading vertically-integrated pharmaceutical development, manufacturing and marketing companies headquartered in India.

It is also among the top pharmaceutical companies in India and has a presence in over 50 countries worldwide.

Piramal, Fujifilm Diosynth tie up for biopharmaceuticalsPiramal Enterprises today said its healthcare vertical has been tied up with Fujifilm Diosynth Biotechnologies for co-operation in biopharmaceuticals in the development of new therapies, including that of cancer.

As part of the alliance, the partners will collaborate in the contract development and manufacture of antibody drug conjugates (ADCs), a growing niche in biopharmaceutical development.

“Fujifilm Diosynth Biotechnologies has a long track- record in delivering successful biologics programmes, and this alliance will combine strengths from both companies for the benefit of the customers and, ultimately, patients”, Piramal Enterprises Executive Director & COO Vijay Shah said in a statement.

Diversified conglomerate Piramal Enterprises has presence in pharmaceutical, financial services and information management sectors.

Fujifilm Diosynth Biotechnologies is among the leading biologics contract development and manufacturing organisations with experience in the development and manufacturing of recombinant proteins, vaccines and monoclonal antibodies among others.

Shares of Piramal Enterprises today closed at Rs 492.20 apiece on the BSE, down 0.50% from their previous close.

Mayne will initially gain rights to 11 hospital products with a market value of around $73 million per annum.

INDUSTRY NEWS

Fidelity Growth Partners injects Rs 400 crore in medical technology firm Trivitron Healthcare Fidelity Growth Partners India (FGPI), the India-focused private equity arm of Fidelity Worldwide Investment has invested Rs 400 crore in Chennai-based medical technology firm Trivitron Healthcare.

Trivitron will use the funding on acquisitions of companies and technologies in Europe and the US. The funds will also be used to enhance the company’s distribution operations in South East Asia, Middle East and Africa.

Dr GSK Velu, who founded Trivitron in 1997 after a stint at Chiron Diagnostics as country head, aims for the company to become a global player in the imaging and lab diagnostics segment. Dr Velu claimed that Fidelity’s knowledge in the medical devices space in China, the US and Europe will help achieve this goal.

This investment also provides partial exits for ePlanet Ventures and Headland Capital, which have been investors in Trivitron since 2007.

This year, the healthcare and Life Sciences sector has received the highest investment from private equity and venture capital players, attracting $817 million across 29 investments till August, according to data from private equity-focused research firm Venture Intelligence. Last year, there were 38 deals in the sector worth $421 million.

Five Indian cos make it to Forbes’ list of 50 most innovative firmsThere are some good news for India as five companies have made it to international magazine Forbes’ list of 50 most innovative firms. Placing the Indian flag on the list, the five companies are Larsen & Toubro (L&T), Hindustan Unilever, Infosys, TCS and Sun Pharma.

While IT firm Salesforce.com has topped the list, Indian engineering major L&T is ranked 9th worldwide, followed by HUL (12th), Infosys (19th), Tata Consultancy Services (29th) and Sun Pharma (38th) among the Indian companies.

While the top 10 includes seven US companies, there are one each from China, Japan and India. The top 10 innovative companies are Salesforce.com, Alexion Pharmaceuticals, Amazon.com, software firm Red Hat, China’s Baidu, Intuitive Surgical, Japanese internet retail firm Rakuten, Edward Lifesciences, L&T and ARM Holdings.

Moreover, Indian companies like L&T, HUL and Infosys, have been ranked higher than global majors like Starbucks (21st), Estee Lauder (23rd), Google (24th), Danone (25th), Apple (26th), P&G (27th) and Diageo (33rd).

The magazine has considered only those companies that have a minimum Market Capitalisation of $10 billion, have spent at least 2.5% of revenue on research and development, and have seven years of public data.

NEW PRODUCT LAUNCHES AND REGULATORY APPROVALS

IPR

Venus Remedies gets patent from Mexico for antibiotic

Pharma major Venus Remedies Ltd today said that it has received a patent from Mexico for its antibiotic drug Vancoplus to combat a wide range of infections.

The patent has been granted by Mexico Patent office and is valid until February 2026, Venus said in a press release.

“Receiving a patent grant from Mexico for our research product Vancoplus at this point in time, when the frequency of MRSA strains is growing high (50-85%) in Mexico, is a great achievement for us”, said Manu Chaudhary, Joint Managing Director and Director-Research, Venus Remedies Ltd.

The total market size of MRSA in the world accounts for $9 billion. At present, it is growing at a CAGR of 4.8% which is estimated to reach to $12.4 billion by 2017, Venus said.

Mexico is the second leading market in the region and represents a growing consumer base for the drug industry given that the regional population may be as high as 687 million by 2020, the company’s CFO Dheeraj Aggarwal said.

Venus Remedies is currently exporting to the various LAC countries such as Columbia, Peru, Guatemala, Dominican Republic, Jamaica, Bahamas and the Caribbean.

Its export to the LAC region has been growing at a rate of near 100% in the past three years, while LAC countries contribute around 15% of total exports.

The drug has already received seven patent grants from countries such as Australia, the US, Japan, Canada, South Africa, New Zealand and Ukraine.

In addition, patent grants from Europe, Brazil, and India are expected.

Indian API players file 269 DMFs with US FDA during first nine months of 2012Indian pharma companies filed 269 Drug Master Files (DMFs) in the US during the first nine months of 2012. Major companies like Hetero Drugs, Emcure Pharmaceuticals, Aurobindo Pharma, Dr Reddy’s Laboratories, Lupin and Macleods Pharmaceuticals filed more than eight DMFs. Further, Hetero Labs, Unimark Remedies, Neuland Laboratories, MSN Laboratories, Alembic Pharmaceuticals, Apotex Pharmachem India Pvt Ltd and CTX Life Sciences Pvt Ltd filed between five and seven DMFs during the first nine months of 2012. During 2009, 2010 and 2011 the total DMFs filed by Indian companies were 271, 311 and 404 respectively. This shows that investments in R&D and facilities started yielding results, enabling Indian companies to file higher numbers of DMFs.

India’s API manufacturers have maintained momentum in filing DMFs in the US because of higher investments in cGMP facilities, R&D and talent pool during the last couple of years. Factors like better infrastructure, cost-effectiveness, contract research and manufacturing services, and tie-ups with international players also assisted these API players. India remains one of the favourite API destinations globally. Despite obstacles like stiff competition, slowdown in world economy, cost-cutting measures in highly regulated markets and adverse foreign exchange rates, Indian API players dominated the market share after China. Indian producers are well placed to seize future opportunities coming up from expiring patents in the next few years.

“Receiving a patent grant from Mexico for our research product Vancoplus at this point in time, when the frequency of MRSA strains is growing high (50-85%) in Mexico, is a great achievement for us”

The API forms the most vital part of a finished dosage product. The overall API market was valued at US $101 billion in 2011, and is expected to grow at a CAGR of 7.9% from 2011 to 2016.

APIs are extensively used in many therapeutic segments such as cardiovascular and central nervous system disorders, oncology, gastrointestinal disorders etc with low profit margins compared to formulation products. The overcapacity and presence of many players putting pressure on the bottom line of API manufacturers. Patent expiration to the tune of US $85 billion in the next couple of years will give a necessary boost for the growth in the API segment. Further, worldwide growth in the biotech segment may offer an additional push for API growth. However, the Indian API market is highly fragmented with the presence of multiple major players. Contract research and manufacturing services (CRAMS) offered by major Indian companies are also providing strong support.

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