At a time when the world's pharmaceutical companies are setting up research and development centres in countries like India, where the cost of drug development is much lower than in the West, Glenmark Pharmaceuticals is swimming against the stream.
The Rs 381 crore (Rs 3.81 billion) Mumbai-based company is planning to set up an R&D centre in Switzerland, one of the most high-cost locations in the world.
Glen Saldanha, chairman and managing director, Glenmark Pharmaceuticals, explained to Business Standard why his company was looking at Switzerland: "While Switzerland is relatively expensive, certain skills are available in that country that can complement our present skills repertoire in R&D."
Saldanha added that his company was in the process of building a team in Switzerland that would be engaged in research and in coordinating clinical development.
"This team will work closely with third-party clinical research organisations and Glenmark's own research centres. The Switzerland centre will complement our existing skills in R&D and also build capacity to examine new areas of research," he said.
Glenmark plans to invest about $3 million {about Rs 13 crore (Rs 130 million)} in the centre over the next few years. "Internal accruals will adequately cover the fund requirement," Saldanha said.
The company has an R&D budget of roughly Rs 50 crore for 2004-05. Saldanha says the budget will go up by 10-20 per cent in 2005-06. The company employs over 100 scientists who focus on molecules for asthma, diabetes and obesity.
Glenmark's $190 million (Rs 817 crore) licensing deal with the US-based Forest Laboratories to develop PDE4 inhibitor GRC 3886, a compound developed by Glenmark, was among the biggest in the Indian pharmaceuticals industry.
