Drug industry gears for new patent regime

By Our Special Correspondent

HYDERABAD, JUNE 16. In a landmark development, eight Hyderabad- based industries in the bulk drug sector formed a consortium under the banner of Custom Molecules Pvt. Limited to collectively attract and execute custom synthesis contracts with overseas drug companies.

The Indian Institute of Chemical Technology (IICT) entered into a memorandum of understanding (MoU) with the new company on Friday to provide comprehensive range of technomarketing, process development and technology transfer services.

Announcing the ``strategic partnership'' at a press conference, the IICT director, Dr. K. V. Raghavan, and the consortium president, Mr. M. Venkatanarayana, said the consortium approach provided an opportunity for Indian companies to enhance their sustainability under dynamic global situation.

The formation of Customs Molecules is the culmination of efforts for upgrading the processes and waste treatment technologies of the small and medium scale chemical units under the Government- sponsored UPTECH programme, they explained.

Global drugs and pharmaceutical sector outsources more than $15 billion, nearly 15 per cent of its total annual turnover for technical, commercial and tactical reasons. The bulk drug units in China, Brazil and other countries are taking full advantage of the new opportunity to supplement their turnover losses on account of intense global price competition. Against this backdrop, the MoU between IICT and Customs Molecules assumes significance, Dr. Raghavan explained.

The institute has identified bulk drugs, agrochemicals and advanced materials as most potential candidates for discovery research. It has entered into a contract with the leading drug companies in the country and abroad for designing and developing new bio-active molecules for anti-cancer, anti-AIDS, anti-ulcer, inflammatory, fungal, atherosclerosis, diabetic and leichmania activities and memory enhances.

Prof. Kumar said the institute along with other CSIR laboratories recently screened more than 50 traditional ayurvedic drugs for assessing their potential to be designed as modern drugs with international patent protection and quality standards. He released a compendium of the IICT's analytical and experimental facilities, which is first of its kind in CSIR system and is proposed to be made available to worldwide IICT clientele through web services.

An electronic purchase system was launched by IICT today, which would enable electronic processing of chemical purchase with companies with which it had entered into rate contract.

Explaining the Indian drug and pharmaceutical scenario, Dr. G. Vijaya Nair, member of the Research Council, said only 12 major companies in the country were capable of competing with international standards of R & D with the advent of IP regime. There are 24,000 registered pharmaceutical companies in India. They would have to merge into ancillaries of big companies or close down, he said.

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