Paul Cap to set up drug development venture

Paul Royalty Fund, part of the $5 billion equity fund Paul Capital Partners, is in talks with Indian pharmaceutical companies to sign royalty-based drug development investments in the generics space.

Ken Macleod, principal, Paul Capital Partners, told Business Standard over telephone from London: "We are in talks with few pharma companies and also some leading academic institutions in India to partner with them in the product development area."

He said India was now a hot spot for generics drug development for the European and US markets. "We are keen to participate in such opportunities along with companies with good track record in terms of revenue stream, niche development pipeline, and competent manufacturing capabilities," Macleod said.

He added that the fund's recent deal with Glenmark highlighted the growing importance of the generic segment of the pharmaceutical industry.

The company is also expected to tie up with a private equity company in India to tap opportunities in the country.

Industry sources said some Indian companies had expressed interest in floating royalty-based funding partnerships for taking forward their R&D pipeline in the global generic arena.

However, Macleod said he did not set any timeframe for the proposed Indian exposure. The $1 billion Paul Royalty Fund has already invested around $650 million globally. India could get a major chunk of the remaining fund, he added.

Last week, Paul Royalty had announced a $27 million royalty deal with Glenmark Pharmaceutical Inc, subsidiary of Glenmark Pharma, to finance development of 16 dermatological products in the US market.