AstraZeneca Building US$10mn Process R&D Plant in India

The local unit of UK- and Sweden-based drugmaker AstraZeneca has begun construction on a new process R&D centre in India, adjacent to the company's existing research facility in Bangalore. The new unit is expected to be complete by mid-2006, with a workforce of roughly 50 research and support staff.

AstraZeneca, in common with many multinational drug companies, already has an extensive presence in India. Much of the company's local research efforts are focused on tuberculosis, a growing developing-world health threat, and it also operates a GMP-certified manufacturing unit.

Nevertheless, recent negative news on the company's pipeline and existing product portfolio poses a substantial challenge for AstraZeneca. The drugmaker's Crestor (rosuvastatin) cholesterol treatment has been the subject of controversy over safety, and lung cancer drug Iressa recently failed in clinical trials. Meanwhile, in the light of WTO-compliant patent protections enacted in India this year, the company could now opt to develop its Indian operations as a low-cost alternative for discovery activities.