Nicholas Piramal Research is working on oncology (five compounds), inflammation (four compounds), metabolic disorder (two compounds) and infectious disease (two compounds). The company expects to have eight compounds in clinical trials by the end of 2007-08
Nicholas Piramal Research is working in four areas of drug discovery: oncology (five compounds), inflammation (four compounds), metabolic disorder (two compounds) and infectious disease (two compounds). Of the above, four are in clinical trials stage and the company expects to have eight compounds in clinical trials by the end of 2007-08 (Apr-Mar).
Nicholas Piramal has also entered into research collaboration with ELI Lilly for a metabolic compound, to conduct late pre-clinical Phase-I and Phase-II clinical trials. The company expects a total payment of $100million on successful conclusion of each stage and royalties on sales as well as exclusive marketing rights for Indian market.
Nicholas will transfer Rs 90 crore of assets and Rs 95 crore of cash to Nicholas Piramal Research. There will be no more funding from the parent to the new company. Therefore, Nicholas Piramal Reseach will look for strategic or financial investors for further funding. Nicholas Piramal Research will issue fully paid up equity shares aggregating Rs 20.9 crore to the shareholders of Nicholas in the ratio of 1:2 that they hold in the company. Nicholas will make initial investment of Rs 4.5 crore in the new entity as equity capital and will hold 18 per cent of the new company. Share capital of Nicholas Piramal Research will be Rs 25.5 crore.