Criti Tech of US, Finoso Pharma form joint venture

HYDERABAD: US-based drug development company Criti Tech has formed a joint venture with the Hyderabad-based formulations development services firm Finoso Pharma.

Both the companies will invest Rs 5 crore in the joint venture - Finotech Pharma - with an equal partnership and use super critical technology to improve efficacy of active pharmaceutical ingredients, or APIs, used in various drugs.

Close to 30 scientists of Finoso will work for the joint venture using the patented technology of Criti Tech. Both the partners are currently talking to three Indian pharmaceutical companies to deploy their technology.

Finotech's revenues will come from three sources- a processing fee for developing the API jointly with the client, a fee for a feasibility study and a royalty on the final product if the developer is able to patent it.

Addressing the media in Hyderabad on Thursday, David Johnston, chief executive of Criti Tech, said, "The technology will help extend the life of the product patents, increase their commercial value by helping them gain the exclusivity period over other companies."

Both innovator and generic companies can secure product process and use patents by deploying Criti Tech's methods as it aids in reducing the particle size in APIs, thereby increasing its solubility.

The joint venture will work with pharma companies that develop anti-cancer, pulmonary drugs and intra-muscular injectibles. Finotech Pharma will also target clients outside India such as US, Europe and Australia. Criti Tech already caters to about 12 drug companies in US and India.

Dr Kumar Kurumadaalli, managing director, Finoso Pharma, said, "We target to file three molecules for regulatory approval to the USFDA every year."