The US-based drug maker Eli Lilly and Company will form strategic drug manufacturing and development alliances with major Indian pharmaceutical companies to tap the opportunities in contract research and manufacturing services available in India.

The outsourcing move is primarily aimed at exploiting the cost-effective solutions offered by the Indian companies and Eli Lilly is unlikely to invest in creating facilities in the country in the near future, said Sandeep Gupta, chairman and managing director, Eli Lilly and Company (India), the Indian arm of Eli Lilly.

"We will explore more strategic alliances and collaborations with Indian companies, rather than creating our own facilities in India. Our growth model in India will be through such alliances and the launch of our patented drugs in India. This has been decided by our parent company Eli Lilly and Company," Gupta said.

He added that the company was not talking to any other Indian pharmaceutical majors for collaborations and the partnership model will be need-based. Eli Lilly hopes to launch about six patented drugs in India and double its turnover from the current Rs 200 crore (Rs 2 billion) within the next six years.

The CRAMS market in India was estimated at $895.44 million for the year 2006, with a year-on-year growth rate of 43 per cent. The market is expected to sustain a growth rate of 33-34 per cent and is likely to reach $6.6 billion by 2013, according to a recent study by market research firm Frost & Sullivan.

Sources said Eli Lilly markets about 15 pre-1995 molecules in India which lack patent protection according to the Indian patent law. Some of these products are manufactured by Sun Pharmaceuticals and Ranbaxy Laboratories [Get Quote].

Sun Pharma [Get Quote] manufactures insulin and an anti-infective for Eli Lilly India and Ranbaxy supplies bulk and finished forms of antibiotics, Distaclor and Keflex and Effcal, a calcium tablet.

Some years ago, Eli Lilly & Company had entered into a bulk drug supply pact with the Chennai-based Shasun Chemicals & Drugs Limited for anti-ulcer drug Nizatidine and anaesthetic Methohexital.

Eli Lilly recently entered into an agreement with Nicholas Piramal [Get Quote] for joint development of several pre-clinical drug candidates from Lilly in multiple therapeutic areas.

The Hyderabad-based Suven Life Sciences [Get Quote] also has a similar agreement with Eli Lilly to collaborate on the pre-clinical research of molecules in the therapeutic areas of the central nervous system disorders.

During January, 2006, the Delhi-based Jubilant Biosys, a part of Jubilant Organosys [Get Quote], had entered into a 5-year agreement with Eli Lilly and Company to provide a range of collaborative drug discovery services.