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Ranbaxy to shift focus from new drug research to generics

Ranbaxy Laboratories has said that it is shifting the focus of its research from the development of new drugs to that of generic drugs for effecting better synergy with its Japanese parent, Daiichi Sankyo.

business Updated: May 16, 2010 12:12 IST

Ranbaxy Laboratories has said that it is shifting the focus of its research from the development of new drugs to that of generic drugs for effecting better synergy with its Japanese parent, Daiichi Sankyo.

"Now we believe, with Daiichi Sankyo, it makes sense for us to concentrate more on generics (research), and find the right integration with the parent company," Ranbaxy Laboratories CEO and managing director Atul Sobti said.

Earlier, Ranbaxy was also focusing on new drug development through a new chemical entity (NCE) research unit, which had played a role in the development of a molecule indicated for malaria treatment.

Currently undergoing phase III clinical trials in India and Thailand, it would become the first molecule developed in India to be commercialised.

Recently, Daiichi Sankyo had announced the establishment of a new company, Daiichi Sankyo Espha Co Ltd (DSECL), to market generic drugs.

With the establishment of DSECL, Ranbaxy will have the opportunity to develop, manufacture and supply products to the Japanese market, Sobti said.

As part of the three-year synergy plan signed between Daiichi Sankyo and Ranbaxy, in which the Japanese firm has around 64 per cent stake, both the companies are working on developing a hybrid business model.

Under the model, Ranbaxy would primarily focus on generic medicine research both for itself and its parent firm while the new drug discovery programme is taken up by Daiichi Sankyo.

"In addition to collaboration between the company’s Shinagawa and Kasai R&D facilities....the group is constructing a global R&D setup in collaboration with the New Drug Discovery Research (NDDR) division of Ranbaxy," Daiichi Sankyo said in a statement posted on its website.

These moves are aimed at accelerating research and expanding the pipeline of new drug candidates, it added.