• OUTLOOK ARENA
  • VIEWS ON NEWS
  • MARCH 30, 2000

Ranbaxy files IND for asthma molecule, silent on JV

Ranbaxy Laboratories has filed an Investigational New Drug application of its new asthma molecule RBx–4638 and plans to conduct clinical trials within the country.

Ranbaxy is among the top Indian pharmaceutical companies ranks second in terms of domestic sales. It has interests in anti–infectives, respiratory and cardiovascular. It possesses 12 brands among the top 250 brands in the country and in terms of its therapeutic dosage offerings covers around 77% of the market.

The pharma research is initiated with the conceptualization, experimentation and early discovery of screening over 100,000 compounds. These are screened down to 1,000 by the pre–clinical stage. The next stage involves the three phases of clinical trials where the new drug is tested on animal and human volunteers. The compounds get screened down to 2 or 5 by the end of clinical trials and around 1 or 2 by the time they get through the regulatory review.

It is in the process of clinical trials that India offers a real cost advantage. However, the results of the trials conducted in India are not accepted by regulatory authorities worldwide. Many countries require a part of the trials to be conducted again in their respective countries before they allow the drug to be sold.

Besides this molecule, Ranbaxy had also announced a recently held analysts meet that there are two other molecules RBx 4467 (anti–fungal) and RBx 5736 which have also completed pre–clinical trials. The management was however not willing to disclose the plans as to whether they would sell out these molecules or develop them further.

It is the developmental phase, which includes regulatory review/approval apart from the clinical trials where the pharmaceutical companies incur the highest expenditure and face the highest risk. Besides, marketing a drug costs almost three times the amount spent on its development.

News reports a few days ago indicated that the company was to assign the molecule to a joint venture with a foreign partner. This would mitigate the risks for Ranbaxy. The present story is however silent on the transfer of ownership of the molecule, if at all.

Click here for a story on the skewed pharma valuations

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407