PIRAMAL LIFE SCIENCES LIMITED
ANNUAL REPORT 2010-2011
Warm greetings to you all.
We are pleased to report that FY2011 was another year of accomplishments
for Piramal Life Sciences Limited (PLSL). Committed to the Group's values -
knowledge, action and care, we reaffirmed our efforts towards reducing the
burden of disease. The year marked a steady movement towards our goal of
being the first Company from India to discover, develop and launch a new
The environment for drug discovery and development globally has been
challenging. Faced with decreasing new drug approvals and increasing R&D
spend, most large pharma companies are acquiring R&D assets from smaller,
nimble R&D companies. This transformation of the pharmaceutical industry
has given rise to new business opportunities in drug discovery for India.
In the last few years there has been a growth in the number of pre-clinical
research collaborations. Indian companies have transitioned effectively
from providing a 'cost and speed' based value proposition with regards to
clinical trials into more value added areas. From fee for service models,
firms have gone into risk sharing and partnership models. R&D companies in
India are out-licensing their molecules at much later stages of clinical
trials and are even looking at taking drugs all through to market.
Since being demerged from Piramal Healthcare Limited (PHL) as an
independent Company in 2007, PLSL has made significant progress. The
pipeline of R&D programs has increased from nine to twenty four with nine
additional programs moving to Phase I/II clinical trials and two additional
programs moving to Phase II clinical trials.
The development projects of this pipeline would need strong financial
support going forward, given increasing spend on clinical trials. Hence,
the Board of PLSL has approved the scheme of de-merger of the NCE Research
Unit of PLSL into PHL. Under the proposed de-merger scheme, all assets and
liabilities of the NCE division will be transferred to PHL. Each
shareholder of PLSL will be entitled to one fully paid up equity share of
Rs. 2 each of PHL for every four equity shares of Rs. 10 each held in PLSL.
During the year, we commenced Phase II study in Netherlands and India for
P1736, a Diabetes molecule. We have received Rs. 132.9 million as the first
milestone payment on completion of Phase I trial of P2202 in Canada, for
our collaborative research program with Eli Lilly. Now, a Phase II study
has been initiated in Canada for P2202. We have also completed a Phase I
study of P1201, another drug being developed with Eli Lilly for
Diabetes/Metabolic Disorders. Overall, we have made steady progress across
different programs in our pipeline.
We wish to express our gratitude to our employees who embody the spirit of
PLSL and to you, our stockholders, for your ongoing support.
Ajay G. Piramal
Date: 21st June, 2011