Sun Pharma managing director Dilip Shanghvi told The Financial Express that the NCE development group, comprising 40 to 50 top notch professionals `familiar with the drug discovery process', will be in place by the next fiscal. The company's NCE research thrust, concentrated at its 30,000 sq ft facility at Sun Pharma Advanced Research Centre (SPARC) in Baroda, will esentially be in three major therapeutic areas -- pain and inflammation, central nervous system and respiratory.

SPARC employs 116 scientific personnel, complementing another 20 member team working exclusively on bulk active projects in Chennai. Another 15 employees handle the group's R&Dwork for regulated markets from SPARC's Mumbai office, while 10 more personnel with expertise intoxicology-screening and molecular biology will join Sun's rolls by December 1998.

Sun's NCE development effort may be broadly designed along the lines of that of the Hyderabad-based Dr Reddy's group. Dr Reddy's Research Foundation (DRF) has already licensed an insulin sensitizer molecule, DRF 2593 to Danish giant Novo Nordisk. It is also set to initiate phase one clinical trials for DRF 1042, an orally effective anti-cancer drug. DRF has received milestone and other payments in excess of Rs 15 crore towards its intellectual property rights.

Shanghvi said that since drug discovery involves fairly huge investments and a high degree of uncertainty, Sun may, at a later stage, explore the option of a strategic alliance. "At the appropriate time, we may look for a strategic relationship which will provide the kind of expertise needed in regulated markets or one that will help take the product to the target audiencemost effectively, post registration," Shanghvi added.

He did not rule out the need for a financial partner for Sun's R&D efforts, although the company believes that income streams from the domestic and international markets could fund these projects well into the development stage.

The company, Shanghvi said, will continue to invest 4 per cent of its turnover on R&D and spend atleast Rs 30 crore to Rs 35 crore in this area in the short term. Physical infrastructure will sap up an investment of around Rs 10 crore.

On Sun's efforts to develop biotechnology for vaccine production, he said the group was at present in the process of assessing the feasibility of this business. "Our vaccine project was essentially aimed at allowing us to develop both familiarity and infrastructure for in-vitro screening. But today, we realise that vaccines itself has evolved into a new science. So, it is imperative to assess whether we can keep pace with global development on this front before committing funds," Shanghviadded.

The company has just launched two new products, Lupride (for infertility) and Octide (for gastro entro pancreatic tumours), based on peptide synthesis this month. Both products are wholly developed using Sun's in-house R&D strengths.

Knowhow for 6 products transferred to US firm

Sun Pharma has transferred technology for six new products to the Detroit-based Caraco Pharma Laboratories as part of an acquisition arrangement concluded in 1997.

Under the deal, Sun will infuse $7.5 million in cash over an 18-month period and provide technology for 25 products over the next five years, valued at over $14 million. Sun, at present, holds 39 per cent of Caraco's equity and this will increase to 68 per cent eventually.

Company officials said that technology for another six products will be transferred by the end of 1998. The Sun-Caraco deal also makes effective an agreement between Caraco and the Economic Development Corporation (EDC) of Detroit wherein payments on a $8.8-million mortgage notefrom the EDC has been postponed until February 1999.