Outsourcing Opportunities India

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    Scope and Opportunities of Contract

    Research Services in India

    VijayVijay DahiyaDahiya

    Sr.BusinessSr.Business ManagerManager New Initiatives (R&D)New Initiatives (R&D)

    Panacea Biotec Ltd., New Delhi,Panacea Biotec Ltd., New Delhi,

    INDIAINDIA

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    Introduction

    The Indian Drugs & Pharmaceuticals industry has made rapidstrides in both National and international markets

    India offers both Cost and Value arbitrage

    Skill base, knowledge, innovative capacity, reduced timelines &

    costs are only a few of the advantages.

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    Drug Discovery - Issues

    Blockbusters pipeline getting dried up

    About 90% of drugs sell less than $150M per year

    About 30% drugs in the above mentioned category cant recover the cost intheir life time

    It is widely believed that most of the low hanging fruits are already pickedup

    Drug approving authorities are tightening the rules every year

    All these attributes to the phenomenal cost of discovery

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    Whats already there

    370 Biotech medicines to treat 200 diseases are in the developmentpipeline from 144 companies

    178 for cancer, 47 for infectious diseases, 26 for autoimmunediseases, 21 for HIV/AIDS

    Of every 5000 compounds only 5 make it to clinical trials

    In spite of sluggish economy R&D spending is on the rise

    For the first 8 pharma companies there is 6.8% increase in the R&Dspending. Approx. $8B spent on R&D in 2002

    Contrary to popular perception FDA approval time has come down

    from 2.4 to 1.9 years from 60s to 99

    Merck introduced 16 new drugs in 7 years

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    Research Strategy

    In the past companies out-sourced only minor components or some thingcompletely outside of their domain

    Once VP, Merck stated that outsourcing research is next to give away thecompany strategy

    Research efforts has to be more intense to be in the business

    How can a company maximize the research efforts without assumingtremendous liability otherwise?

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    Growth of Global Chemistry Services Market

    (US$ Billions)

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    2001 2002 2003 2004 2005 2006 2007 2008

    Year

    Value

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    Working with CROsRisk/Benefit Review

    Expected Benefit

    Reduced time to discovery anddevelopment

    Access to new technologies andexpertise

    Access to focused, flexibleinfrastructure

    Lower capital investment, higherROI

    Lower total cost

    Perceived Risks

    Loss of control

    Atrophy of critical discovery anddevelopmental skill

    Regulatory risk

    Leaking Intellectual Property Mismatch of work culture leading to

    incompatibility

    Dishonoring exclusivity

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    Working with CROsIssues to consider

    Technical ability, reputation, experience

    Communication skill

    Knowledge of specification/regulatory requirements

    Quality systems, Accreditation

    Track record of honoring IPRs

    Adherence to timelines

    Price/Cost

    Long-term partnership

    To achieve the desired goals with minimumresource input

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    Outsourcing Process

    Speed

    Cost Science & Quality

    C x S x SQ = Productivity

    Indian Weakness:

    Raw material resourcing

    Private courier regulations

    Customs trappings

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    CROs in the developing countries

    QUALITY COMES FIRST

    CROs in the developing countries lose credibility very fast on thisaccount

    Accurate Certificate Of Analysis report must accompany thedeliverables

    Prior clear understanding with the clients on the parameters of QC.

    TIMELY delivery is very important but not at the expense of QUALITY

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    CROs in the developing countries

    COMMUNICATION

    India has a distinct advantage over its competitors and its of primeimportance

    Telecom revolution has helped enormously

    Cultural acquaintance may be helpful

    (like BPO?)

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    INDIAN ADVANTAGE

    Communication

    Documentation Good analytical set up

    cGMP compliance(if necessary - more credibility required)

    Consistency Long term commitment

    Strong legal system (Better than our competitors)

    Straight forward pricing

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    Current Gloom Prevailing in the Biotech World

    NEARLY 40% BIOTECH COMPANIES HAVE STOCK

    VALUES BELOW $2.00 PER SHARE, AND 20% HAVE

    VALUES BELOW $1.00 AND FACE DELISTING. SOME 25%

    OF COMPANIES ARE TRADING AT A VALUE LESS THAN

    THEIR AVAILABLE CASH PER SHARE. AND MANY HAVE

    LESS THAN A YEARS WORTH OF MONEY TO FUND

    OPERATION

    CHEMICAL & ENGINEERING NEWS, JAN. 27, 2003, PP.41

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    WHATS INDIAN CROs PROSPECT IN THIS BACKDROP?

    The discovery companies will rely more on sophisticated technologiescurrently not available in India

    In spite of that business will not be seriously affected as this constitutes aminiscule fraction of the total cost but we will not see the great surge till themarket improves

    More companies will be willing to work if they can pay by stock swappingetc. - Introducing cash substitute

    CROs should change gear and be prepared for short term projects -intense marketing effort required to bring in more customers - not merelyusing as a backend hub

    Credible Value Addition will determine a CROs future

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    CONCLUSION

    Contract Research Services holds lots of promise for India.

    Communication - India has a distinct advantage. IT - Strength for the the bioinformatics applications. The best R&D companies have already setup operations in India. Ability to provide ICH GCP compliant clinical research studies.

    Clinical research that accounts for majority of drug development costs,could be immensely controlled by outsourcing from India. The diverse population and genetic pool available offers wide ranging

    opportunities for Clinical research. A large no. of research labs, universities and other academic institutions

    can provide cost effective interdisciplinary research. Spare capacity can offer long term facility /resource commitment to

    projects . India has the second largest no. of cGMP facilities outside of US. Change of legislation, understanding of the urgency, realization of the

    fierce competition from the neighborhood will facilitate growth.

    Availability of quality research capacity and the ability to meet theresearch objectives at very economical terms on committedtimelines makes India the destination for outsourcing Drug

    development and clinical research .

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    Innovation has to be continuousand has to better every single time

    Panacea Biotec addresses another strategic. needfew of the endorsements

    .20th Oct2004

    High hopes for fridge-free jabsA new technology developed in the UK couldrevolutionise vaccine delivery by eliminating theneed for refrigeration.

    British Scientists Develop New VaccineTechnologyLONDON (Reuters) - British scientists have taken tips fromMother Nature to develop a new technology that could...

    Scientists develop fridge-free vaccineWEDNESDAY, OCTOBER 20, 2004 :A leading Indianbio-tech firm is on the cusp of manufacturing arevolutionary new, UK-developed vaccine...

    read more... read more... read more...

    Press Release - 9th OCT. 2004Panacea Biotec to manufacture CBLsrevolutionary vaccineWednesday, October 20, 2004 : A new technology,based on processes that are two billion years old,promises to revolutionise ...

    Forget The Fridge, wait for vaccine in sugarboxNEW DELHI, OCTOBER 19:A low-cost child vaccine thatcan be transported and stored in the most remote villageswithout need for refrigeration will be out in a couple of years.

    DFID BOOST FOR NEW VACCINETECHNOLOGY WHICH COULDPROTECT 10 MILLION MORECHILDREN FROM KILLER..

    read more.... read more... read more...

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    I t d ti

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    Introduction

    Panacea Biotec is one of the leading and fastest growing healthcompanies, involved in research, production and marketing of ethical

    pharmaceuticals, vaccines, and biopharmaceuticals products .

    Panacea Biotec is a proactive customer centric company and lays

    emphasis on innovation and quality.

    C C t i

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    Core Competencies

    3 State-of-the-art Research & Development Centers

    with over 155 Scientists

    Collaborative Research & Development Programme

    Joint Ventures & Product Licensing Arrangements

    3 Production Facilities Meeting cGMP Norms

    Established Brand Equity In Many Therapeutic Areas

    Dedicated Sales and Marketing team of more than

    1000 professionals.

    BestOnhealth.com Health Portal

    Ranking

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    Ranking

    Panacea Biotec is ranked 43rd in terms of retail sales audit (IMS-ORG

    April 2004, MAT) and 38th in prescription audit (CMARC, Nov03- Feb04).

    Panacea Biotec is ranked 2nd amongst 200 biotechnology companiesin India.(Biospectrum, Vol. 1, Issue 7, September 2003).

    Panacea Biotec also features in first 250 companies in the D&Bs

    annual report Indias top 500 companies.

    Achievements

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    Achievements

    Indias most valuable companies.

    Panacea Biotec is among

    Indias biggest wealth creators

    (The BT-Stern ranking of companies - Business Today, 11 April 2004).

    Research & Development

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    Research & Development

    Core Research Areas:- Drug Delivery

    - Natural Products

    - Drug Discovery- Vaccines

    - Biopharmaceuticals

    Supporting Functions:

    - Analytical / Bio-analytical

    - Process Chemistry- Information Science

    - Intellectual Property Rights

    - Documentation & Regulatory Affairs

    - Pre-Clinical & Clinical Research

    Pharmaceuticals

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    Pharmaceuticals

    A state-of-the-art 30,000 sq.ft. research facility with 110 scientists dedicated for

    Pharmaceutical Research. Panacea Biotec has extensive research capabilitieson the following areas :

    - Self Microemulsifying Drug Delivery Systems (SMEDDS)

    - Mucoadhesive / Bioadhesive formulations

    - Specialized tablets (inlay / bilayer / tablet in tablet)

    - Gastroretentive Systems

    - Targeted Drug Delivery- Hydrophillic Matrix Systems

    - Nanoparticles

    - Taste Masking

    - Mouth Dissolving / Dispersion Systems

    -Transdermal Drug Delivery

    - Particle coating / Beads

    Pharmaceutical

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    Pharmaceutical

    Facil ities Include

    - Sophisticated Drug Delivery Labs equipped with Lyophilizer, Zetasizer, Particle

    Size Analyzer, High Pressure Homogenizer, Differential Scanning Calorimeter,

    Fluidized Bed Processor, Spray Drier, Multilayer/Tablet-in-Tablet Machines etc.

    - Pilot Plant Facility for Clinical Trial Batches- Sophisticated Analytical & Bio-analytical Labs equipped with an array of HPLCs,

    Gas Chromatography equipment, FTIR, LC-MS/MS etc.

    Animal House

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    Animal House

    Species available mice, rats, guinea pigs, hamsters and rabbits.

    Breeding facility - mice, rats, guinea pigs and rabbits.

    Approved by Govt. of India and monitored

    by Institutional Animal Ethics Committee.

    -Evaluation of conventional & newer vaccines

    -Respiratory Pharmacology

    -Nociception / Inflammopharmacology

    -Neuropharmacology

    -Gastrointestinal permeability studies

    -Pharmacodynamic studies

    -Biochemical and Hematology studies

    -Pre-clinical and toxicity studies

    -Newer animal models

    Facilitates research relating to

    Vaccine & Biologicals Research

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    Vaccine & Biologicals Research

    Centered on the knowledge-base of over 45 scientists, the division hasdelivered two products in the market: ENIVAC HB in Uniject and Quadruple(DTwP-HB) vaccine. The novel combination vaccine Liquid Pentavalent(DTwP-HB-HIB) is scheduled to be launched by Dec2004.

    The division is focussed on the following areas of development:

    Cell - culture based viral vaccines

    Bacterial Vaccines

    The division also plans to carry out research on J.E.V.Vaccine , Choleravaccine, Dengue Fever etc. in collaboration with reputed institutes /universities.

    Vaccines

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    Vaccines

    Product Manufacturing

    & AnalyticalValidation

    Developmental

    stages Mfg &Analyt ical

    Standardisation

    Pre-

    Clinical

    Clinical trial

    Phase I

    Clinical trial

    Phase II/III

    Final Mfg

    PentavalentVaccine

    (DTP-Hb-Hib)

    Completed Completed Completed

    Completed

    InProgress

    Initiated

    Initiated

    Completed Completed In Progress

    TetravalentVaccine

    Completed Completed Completed Completed In Progress

    Recombinant

    AnthraxVaccine

    Completed Completed Initiated

    Sabin basedInactivated Polio

    Vaccine

    Completed UnderCompletion

    Hib ConjugateVaccine

    UnderCompletion

    UnderCompletion

    Recombinant

    HIV Vaccine

    In Progress In Progress

    JapaneseEncephalitis

    Vaccine

    In Progress In Progress

    - Confidential -

    Vaccines

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    Vaccines

    Product Manufacturing &

    Analyt ical

    Validation

    Developmental stages

    Manufacturing &

    Analyt ical

    Standardisation

    Pre-Clinical Clinical t rial

    phase I

    Clinical trial

    phase II/III

    Tetanus Toxoidin Uniject

    Completed Completed Completed

    In Progress

    To Be Initiated

    VaricellaVaccine, LiveAttenuated

    In Progress In Progress To Be Initiated

    Hepatitis AVaccine

    In Progress In Progress

    Typhoid Vaccine In Progress In Progress

    HexavalentVaccine

    In Progress In Progress

    MeningococcalConjugate

    Vaccine

    In Progress

    PneumococcalVaccine

    Initiated

    - Confidential -

    Clinical Research

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    Clinical Research

    The Clinical Research Department successfully coordinated Clinical Trials on:

    - Enivac HB (Recombinant Hepatitis B vaccine) Phase III

    - Ecovac 4 (DTP-HB vaccine) Phase III

    - Pentavalent Vaccine (DTP-HB-Hib) Phase III

    - Tetravalent Vaccine (DTP-Hib) Phase III

    - Recombinant Anthrax Vaccine Phase I

    - Nimulid Safeinject Phase II, Phase III

    - Manyana Phase III- ThankGod Phase II

    - Routine Phase III & bioequivalence studies are carried out for a large number of

    products.

    Publications

    - Scientific Papers : 25

    - Poster Presentations : 8

    - Book Chapters : 3

    Intellectual Property

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    Intellectual Property

    With a pragmatic approach towards Research and Development, Panacea Biotec has

    been able to develop some of the most exclusive products,

    XEED (Antitubercular FDC with innovative Drug Delivery for optimum bioavailability of all drugs)

    Nimulid SafeInject (Parenteral formulation of Nimesulide based on co-solvent technique)

    Panimun Bioral (Cyclosporine formulation based on SEDDS technology)

    ThankGod (Euphorbia prostrata extract for the comprehensive management of Haemorrohoids)

    Nimulid MD (Nimesulide tablets based on Fast Mouth Dissolving Technology)

    Willgo (Nimesulide controlled release formulation)

    Nimulid Transgel (Nimesulide Transdermal Gel)

    NIMCET (Synergistic combination of Nimesulide Long Acting + Cetirizine)

    Manyana (Antispasmodic agent)

    Total no. of International Patents granted : 110

    Intellectual Property

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    p y

    Patent applications filed for a number of products, to name a few:

    0202 (Novel peptide for the treatment of Diabetes)

    2 Good (Amoxicillin once daily)

    Odipep (Synergistic combination of Prokinetic agent and PPI)

    Niacin Extended Release

    Recombinant Anthrax Vaccine

    Injectable Polio Vaccine Sabin Strain

    Novel Compositions for topical delivery

    Pending Patent Applications : 114

    Production Facilities

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    Panacea Biotec has three cGMPcertified production units equippedwith state of the art facilities for

    Pharmaceuticals , Biopharmaceuticalsand Vaccines.

    Panacea Biotec is a WHO Prequalified Supplier for Oral PolioVaccine (OPV) and Diethyl Carbamazine (DEC) tablets

    Biological Manufacturing Facilities

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    Panacea Biotec commissioned and validated large scale manufacturing facilities

    for Recombinant Vaccines (e.g. Hepatitis B vaccine).

    Facilities include fermentors, harvesting and large scale purification equipmentsbased on chromatography, MPLC etc.

    Automated system for formulating vaccines using adjuvants.

    Quality Control facilities for vaccines: immunochemistry, physico-chemical,microbiological and animal testing methods.

    An independent Quality Control / Quality Assurance unit.

    Marketing

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    Marketing

    Panacea Biotec has countrywide marketingsetup represented by a strong marketingteam of more than 1000 professionalssynergizing their efforts to transform the

    companys brands to winning brands in themarketplace.

    The marketing team is positioned inmultiple SBUs, so as to have appropriate

    focus in the concerned therapeuticsegments.

    DIACAR

    Critical Care

    SBUsSBUs

    BOH

    GROWPRO

    Brands

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    Panacea Biotec has pioneered the launch of various technology

    driven pharmaceutical specialities in numerous therapeuticsegments including :

    Pain Management

    Diabetes Management Organ Transplantation Immunization

    Respiratory Diseases Gastrointestinal Diseases Osteoporosis

    Future Plans

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    Panacea Biotec plans

    Research Facilities One new dedicated R&D center for Drug Discovery One R&D center for Biopharmaceuticals

    and

    increase the no. of Scientists to ~ 500 overnext two years.

    Production Facil itiesA new production facility for Pharmaceuticals inNorth of India conforming to the cGMP norms ofUSFDA,E.U and other regulatory agencies is expectedto be functional by Jan2005.

    Panacea Biotec plans to build a state of artmanufacturing facility for bacterial and cell basedvaccines.

    Drug Discovery

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    The upcoming ultra-modern Drug Discovery Center having more than 35,000

    sq.ft. of lab-space, will be manned by 150 scientists focusing on infectiousdiseases, cancer and metabolic disorders. The facility will specialize in:

    - Chemical synthesis

    - Medium Throughput Screening

    - Complete pre-clinical profiling

    - ADME studies

    - Development of Humanized Antibodies

    - Development of Antibody-Drug conjugates

    Biological Manufacturing : Future Plans

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    - Panacea Biotec plans:

    - To build state of art manufacturing facility for bacterial and cell basedvaccines.

    - To augment vaccine filling unit.- Newer vaccines will be developed in house or through in-licensed

    technology.

    Strategic Tie-ups

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    Panacea Biotec has entered into synergistic tie-ups with a number ofresearch oriented organizations & institutions, including:

    - Chiron Corporation, USA

    - Cambridge Biostability, UK

    - Center for Genetic Engineering & Biotechnology, Cuba

    - Biopharma Pte., Indonesia- Solvay, Netherlands

    - National Institute of Immunology, India

    - National Research & Development Corp., India

    - Jawaharlal Nehru University, India

    - Institute of Himalayan Bio-resources & Technology, India

    - Confidential -

    Strategic Tie-ups

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    Joint Ventures

    Joint venture with Center for Genetic Engineering & Biotechnology,

    Cuba for the production of recombinant proteins in India.

    Joint venture with Chiron Corporation for vaccines in India.

    Collaborations

    Research collaboration with Solvay, Netherlands for the development

    of Drug Delivery System for NCE SLV 306.

    Panacea Biotec is developing thermostable vaccines under

    collaboration with Cambridge Biostability, UK with grants from DFID.

    Objectives of the visit

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    j

    In Licensing / joint development : Preventive and Therapeutic vaccines for infectious diseases

    Human or humanized monoclonal antibodies for therapeutic

    applications for the management of : Post Organ Transplant Complications

    Rheumatoid Arthritis

    Asthma & Allergy

    Psoriasis

    New drug interventions for Infectious diseases (RespiratoryDiseases ),Diabetes Management,, Pain management and

    for the management of Post Organ Transplant Complications.

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    For more information, please visit our website at

    www.panaceabiotec.comwww.panaceabiotec.com

    Panacea Biotec Ltd.Panacea Biotec Ltd.BB--1 Ext./G1 Ext./G--3, Mohan Co3, Mohan Co--op.op. IndlIndl. Estate,. Estate, MathuraMathura Road,Road,

    New DelhiNew Delhi--110 044, INDIA110 044, INDIA

    Phone : +91 11 5167 9000/8000, 2694 5270Phone : +91 11 5167 9000/8000, 2694 5270Fax : +91 11 2694 0199, 2694 0621Fax : +91 11 2694 0199, 2694 0621

    Email :Email : vijaydahiya@[email protected]@[email protected]