Elder Pharma, Israel co enter in-licensing deal

MUMBAI: Mumbai-based Elder Pharmaceuticals has signed an exclusive in-licensing agreement with Israeli biotech company Enzymotec for the marketing in India of CardioBeat, a cholesterol reducing dietary supplement.

“The drug will be launched shortly in India under the brand name Lipicheck,” said Alok Saxena, director, international division, Elder Pharma. Under the terms of the agreement, Enzymotec will manufacture and supply the active ingredient to Elder Pharma, which will in turn be responsible for manufacturing and marketing the finished formulation in India.

According to the company, the market for cholesterol reducing drugs in India is estimated at around Rs 500 crore. “This new agreement is in line with the company’s strategy to focus on in-licensed high-value niche products,” said Mr Saxena.

This is the second in-licensing agreement completed by the company this year. Last month, Elder Pharma had announced a similar deal with Spain’s Laboratorios Farmaceuticos Rovi to market advanced heparins (anti-thrombotics) in India. Heparins are used for the treatment of thrombo-embolic venous diseases like pulmonary embolism.

The company also entered last year into an exclusive agreement with Swiss drug giant F. Hoffman La Roche to market an innovative osteoporosis drug, Bonviva. While Elder Pharma now holds exclusive marketing rights for the drug in the domestic market, Roche manufactures and supplies the finished formulation to Elder Pharma.

“In-licensed drugs account today for around 30% of our products portfolio,” said Mr Saxena. “We expect this share to go up to 80% by 2010. Elder Pharma is already in talks with five global pharma companies for new in-licensing deals. “We are looking at drugs in the chronic, cardio and neuro segments,” said Mr Saxena.

“With the implementation of India’s new patent regime, domestic companies will increasingly need to look at in-licensing opportunities and to develop strong relationship with global pharma companies.”

Elder Pharma has posted a 19.6% increase in net sales to Rs 121.1 crore in the fourth quarter ended March 31st, 2007, driven by a strong growth in revenues from in-licensed products. The company today has over 30 marketing tie-ups with global pharma companies.

Net profit was up by 17.6% at Rs 15 crore, from Rs 12.7 crore in the quarter ended March 31st, 2006. This takes the company’s net sales for the year ended March 31st, 2007 to Rs 462.1 crore, representing a 20.6% increase over last year. Net profit jumped by 54.8% to Rs 568.2 crore in the year ended March 31st, 2007.