In the first Indo-Japanese collaboration in the area of drug discovery and development, Reliance Life Sciences is set to join hands with Japan's pharmaceutical giant Otsuka Pharmaceutical.
Reliance Life Sciences' collaboration with Otsuka is part of its genome research initiative to promote personalised medicine using the expertise of outside research institutions. The objective is to develop new drugs as well as diagnostic procedures.
Reliance Life Sciences is one of the leading players in the area of genome research in India. Otsuka, too, has been pursuing genome research.
The two companies are expected to sign a long-term biotech research and drug development pact shortly.
A team of senior Otsuka executives is coming to India this week to hold final discussions for the high-value research collaboration.
There is a growing realisation among overseas pharmaceutical companies that R&D costs can be cut by collaborating with research-driven companies in India.
The cost of developing a new drug has risen to as high as $1 billion in the West and in Japan. At the same time, R&D productivity is seeing a decline. The trend started in 2003 when GlaxoSmithKline tied up with Ranbaxy for a joint new drug discovery programme.
The tie-up between Reliance Life Sciences and Otsuka may also include a regional clinical research project for Otsuka's latest discovery product, Abilify, a prescription medicine for the treatment of acute manic and mixed episodes associated with bipolar disorder and an anti-psychotic medication for the treatment of schizophrenia. The financial implications of the deal are not immediately known.
Otsuka sources told Business Standard that the drug research initiative planned with Reliance Life Sciences would include new biopharmaceuticals in the area of psychotropic diseases and human metabolic disorders. Reliance sources declined to comment on the project.
Once the collaboration is finalised, the project will be under the responsibility of Otsuka's US subsidiary, Otsuka America Pharmaceutical Inc.
The Mukesh Ambani-controlled Reliance Life Sciences is a research-driven organisation participating in the domains of medical, plant and industrial biotechnology. The company aims at 'bringing better life in a cost-effective manner.'
Incorporated in 2001 as the new millennium initiative of the Reliance group, Reliance Life's cell biology research centre in Mumbai is the first of its kind in Asia.
This initiative is uniquely integrated-horizontally across several cell biology disciplines and vertically from repository infrastructure through basic and applied research to the clinical environment.
Otsuka, a multinational pharma group with annual sales of ¥338 billion (Rs 13,043 crore), has been active in drug research and development of new innovative drugs ever since it opened its dedicated research arm, the Tokushima Research Institute in 1971.
The company's overseas foray was initiated with the opening of research institutes in Frankfurt and Maryland in US. The American R&D company has launched drugs for the treatment of glaucoma and ocular hypertension and antiplatelet drugs.
Prescribed Path
- Reliance Life Sciences' collaboration with Otsuka is part of its genome research initiative to promote personalised medicine.
- The cost of developing a new drug has risen to as high as $1 billion in the West and in Japan.
- The tie-up may also include a regional clinical research project for Otsuka's latest discovery product, Abilify.
- The drug research initiative will include new biopharmaceuticals in the area of psychotropic diseases.
