Nicholas may sign pact to make GSK's flu drug

Nicholas Piramal India, one of the leading pharmaceutical companies, is likely to sign a third party manufacturing contract with the global pharmaceutical leader GlaxoSmithKline for its avian flu drug brand, Relenza.

NPIL sources said the company is at advanced stages of discussion with GlaxoSmithKline Plc on the same. When contacted, sources in GSK India declined to comment.

"This (the proposed alliance with NPIL) is something being looked after by the parent company," they said.

GSK had announced its willingness to sub-license the production of its flu treatment, Relenza, to outside 'partners' last week. Relenza is currently the second-largest treatment available for the treatment of avian flu after Roche's Tamiflu capsule.

GSK announced that it is boosting its own production as well as allowing outside licensing to avoid the similar problems being faced by Roche.

According to analysts, with the increased production by sub-licensing the manufacturing, another £800 m in sales of Relenza is expected globally.

The production and supply of avian flu drugs is an issue with the companies failing to meet the required demand. This offers opportunity for the potential pharma companies to scale up production.

Nicholas Piramal is a leader in the cardiovascular segment. It also has a strong presence in antibiotics and respiratory segments, pain management, neuro-psychiatry and anti-diabetics segments.

NPIL has joint ventures and alliances with global leaders including F Hoffmann-La Roche Ltd, Switzerland; Allergan Inc, US; Boots Plc, UK; Gilead Sciences, USA; Cytran Inc, USA; Reckitt Benkiser, UK; Cheissi, Italy; and IVAX Corp, UK.

The company is well poised to take advantage of the opportunities that will emerge in the bulk actives and intermediates market for contract manufacturing at attractive price points of both on patent and off patent drugs for the regulated markets of Europe, the US and Japan.