INDIA'S ORCHID TO INCREASE US RESEARCH JOINT VENTURE STAKE

Indian antibiotics producer Orchid Chemicals has claimed that it will increase its stake in US drug discovery joint venture Bexel Pharmaceuticals to 75%. The move comes as the Indian company has announced that it is seeking multinational sector partners for its diabetes compound BLX-1002, which recently completed Phase II (a) clinical trials. The company says it will now increase its cash and intellectual property participation in Bexel.

In common with many medium-sized Indian drug producers, Orchid is hoping to emulate the recent success of leading rivals such as Ranbaxy, moving into developed markets and boosting discovery capabilities. The company recently opened a new research centre near its base in Chennai, India, claiming the facility has developed several promising molecules for treatment of cancer. Meanwhile, the company added the cephalosporin Ceftraixone to its 15 recent drug master file applications with the US FDA in December. Orchid hopes that sales in its main antibiotics segment will drive forays into other, potentially more lucrative, therapeutic areas.