USV, a Mumbai-based Rs 800 crore drug manufacturer with research expertise in small molecules and proteins, recently decided to venture into the lucrative segment of vaccines.
For that, it decided to tap the expertise at the research wing of the All India Institute of Medical Sciences, New Delhi, which has developed an indigenous novel typhoid vaccine.
The partnership saved the company three to four years it would have needed to come up with its own typhoid vaccine, said K G Rajendran, R&D head at USV. Not surprisingly, the company is working on four other similar collaborations.
As Indian pharmaceutical companies pump more resources into drug development, they are increasingly farming out at least a part of the research to medical colleges and universities to save time and money.
Some of the biggest names in the industry -- Ranbaxy Laboratories, Dr Reddy's Laboratories, Nicholas Piramal and Biocon -- have forged such partnerships and are looking for more.
"Such collaboration provides access instantaneously. Access to academic researchers can be very useful. Normally, intellectual property (IP) from academic institutions comes at a very early stage. The risks are rather high and the IP can be in-licensed at relatively low cost," said Rashmi H Barbhaiya, CEO and managing director of the Tatas-promoted drug discovery outfit Advinus.
Bangalore-based biotechnology company Biocon recently collaborated with the Deakin University, Australia, which has a strong focus on biotechnology and bio-sciences research.
Deakin will set up a Deakin research institute in Bangalore and the two will jointly develop a mammalian cell bio-processing facility in Australia. Deakin, through its metabolic research unit, will undertake research on metabolic (digestion related) diseases on behalf of Biocon.
Two weeks ago, Nicholas Piramal India (NPIL) tied up with Apollo Hospitals for the molecular profiling of tumours so as to identify leads to develop a new drug for cancer.
NPIL is also in talks with Sri Ramachandra Medical College of Chennai to evaluate drug development options in diabetes. The company had established several such collaborations in the past.
"Several products that came out of these research collaborations are undergoing pre-clinical studies, including toxicology and human clinical trials. We expect to launch new chemical entities by 2010," said Swati Piramal, director, strategic alliance, NPIL.
A few months ago, Hyderabad-based Dr Reddy's Laboratories, the pioneer of NCE research in India, chose the University of Auckland, New Zealand, as its partner to develop a first-of-its-kind 'poly-pill', that combines four medicines to treat heart ailments.
"It is difficult to have all the expertise in-house in an economically efficient manner. It is important that companies focus on their core competence and access complementary capabilities available with research institutions," said a senior scientist with Dr Reddy's.
The Council for Scientific and Industrial Research (CSIR) has for long had such tie-ups. "In the past, CSIR has developed and commercialised more than 30 drugs and most of them were generic products. Now CSIR and our laboratories are focusing on new drug development, in association with the industry, and we are ready to share the risks with the industry," said Yogeswar Rao, head, technology and business development, CSIR.
It is working on six projects, including two with Lupin for drugs for psoriasis and tuberculosis, and one with Bharat Biotech for an anti-bacterial formulation.
"Most Indian pharmaceutical companies lack adequate research background and resources and therefore the industry can leverage such collaborations through commercially viable projects," said Rajendran of USV.
Collaborative research with academic institutions is an integral part of the new drug discovery process for research-driven pharmaceutical companies in the US and Europe.
About 15 of the 21 current top-selling drugs in the world, and more than 60 per cent of the new drugs developed so far, originated from the universities and academic research institutions, and not from the laboratories of the pharmaceutical companies.
The National Institute of Health in the US spends over $28 billion on drug research through 28 of its institutes and universities, involving over 600,000 researchers worldwide.
"India has embarked on this path only recently. In due course, academia-industry collaboration will improve and government funds will become available and easily accessible to those who are in a position to contribute to this emerging opportunity," said Bharbhaiya.