Cipla to produce biotech drugs

Cipla, the country’s second-largest drug company, will foray into the production of biotechnology medicines soon. The company is planning to set up a 50:50 joint venture partnership with a Chinese firm. The JV will be based in India and will manufacture and market bio-similar products (off patent biotechnology medicines) for domestic and overseas markets.

Confirming the development, a Cipla official said the identity of the JV partner cannot be disclosed until the JV is signed. “We are in the process of signing the JV agreement. The details will be shared once it’s over,” he said. However, the source pointed out that the Chinese counterpart is an established biotech company with products in the local market.

Cipla has been on the lookout for a biotech partner after its JV with Bangalore-based Avestha Gengraine Technologies (Avesthagen) for a biopharmaceuticals development programme failed to take off.

Under the Avesthagen-Cipla agreement, Avesthagen was to focus on research and product development and clinical trials, while Cipla — in addition to sponsoring the research — would also be responsible for the commercialisation of the product.

The key area of focus for the Avesthagen-Cipla JV was recombinant products in the auto-immune segment. This was also to be extended to the cardio-vascular disease (CVD) and cancer segments.

The Cipla official said the Chinese JV will introduce off patent versions of biotechnology medicines in the local market by 2010. He did not reveal the size of the investment.