The Economic Times (India) via NewsEdge Corporation :
:
Ranbaxy Laboratories is about to enter into a 10-year co-marketing
agreement with Jupiter Bioscience to tap the $6-billion global peptide
pharmaceutical market.
The specialised organic compounds
manufacturer will initially licence out to Ranbaxy Lab five generic
peptide drugs in anti-cancer, anti-diuretic, osteoporosis and growth
hormones segments, worth $3 billion at innovator's prices.
According
to sources, the Ranbaxy will also pick up 3.2 million equity share
warrants on preferential basis in the Hyderabad-based company - adding
up to 14.9% post expanded equity after qualified institutional
placement and post conversion of 1.75 million promoter warrants into
equity shares.
This tie-up will allow us to rapidly bring our
products to international markets, as Ranbaxy has a large marketing
presence in semi-regulated and regulated markets across the world, said
Jupiter Bioscience chairman and managing director Venkat R
Kalavakolanu. Under the terms of agreement, profit on sales will be
shared between the two companies.
Jupiter Bioscience will,
however, retain rights to market the drugs on its own or with another
partner in different markets, said Mr Kalavakolanu. When contacted, a
Ranbaxy Lab's spokesperson said, We have entered into an in principle
agreement with Jupiter Biosciences for a global supply arrangement
subject to due diligence. He, however, refused to comment further on
the development.
The peptide market, estimated at around $6-7
billion, represents a significant opportunity for generic players. It
is estimated that peptide drugs worth $3 billion (at innovator's price)
will go off patent in the next four years. Besides, at a time when the
US and European generic markets continue to reel under increasing
pressure and ever-rising competition, price erosion for generic peptide
drugs remains relatively low.
Generic versions of peptide drugs
are typically launched at around 70% of the innovator's price, said Mr
Kalavakolanu. According to analysts, price erosion in the US commodity
generic market would stand anywhere between 85% to 98%. High technology
barriers limit the entrance of new players in the peptide space, said
Mr Kalavakolanu. Sun Pharmaceuticals and Cadila Pharmaceuticals count
among the few other Indian players present in this segment.
The
global peptide market is expected to continue to grow significantly in
the next few years. Currently, there are globally 270 new peptide drugs
under clinical development and 400 in pre-clinical studies, said Mr
Kalavakolanu. According to the company, the global market for peptide
drugs could reach $10 billion in the next three years.
Jupiter Bioscience's shares were up 9.98% at 162.05 on BSE on Monday.
<<The Economic Times (India) -- 04/10/07>>
