Alembic in tie-up with 2 MNCs for formulations R&D

AHMEDABAD: Shortly after it floatedits separate R&D division — BioArc Research Solutions — in July2003 to focus on contract research, Vadodara-based pharmaceutical companyAlembic has entered into agreements with two multinational pharmaceuticalcompanies.While one of them is a US-based pharmaceutical player, theother is a European pharmaceutical company, according to informedsources.Both the contract research tie-ups have been made forformulations development work, which has already been initiated, sourcesadded.When contacted, company officials refused to divulge eitherthe size of the deal or the identities of the two companies citingconfidentiality clauses included in the agreement.Alembic had beenaggressively scouting for R&D tie-ups, particularly in the US market, andhad been talking to a few players in that country since the launch of its newresearch division. Alembic already has a contractresearch tie-up with Chiron Corporation of Emeryville in California and ispumping in Rs 15 crore in the first phase of expansion of its R&D divisionthat houses 150 scientists.According to the company, the main thrustat BioArc was to provide research services in three broad areas of chemistry,formulations development and pharma biology. Alembic has beenspending around 2-3 per cent of its turnover on research and developmentefforts. Alembic spent around Rs 14.41 crore, or 2.31 per cent of its turnover,on R&D.Alembic''s new found R&D focus is aimed cashing in onthe new emerging trend of mid-sized Indian pharma players carrying out contractresearch for global pharma giants as India emerges as a global pharma R&Dhub, according to analysts.