The Rs 900-crore (Rs 9 billion) Alkem Laboratories and the leading US pharmaceutical and research company Oculus Innovative Sciences Inc are planning to set up a 50:50 joint venture in India. According to sources close to the development, the JV will focus on manufacturing the major diabetes and other acute wound care brand of Oculus - Oxum in India for the global markets.
Oxum is a super oxidised solution, a wound care product especially for ulcer and diabetes related wounds, with patented Microcyn technology, developed by Oculus. The product is currently marketed under the brand name Oxum and is indicated for use in cleaning, moistening, irrigating, lubricating and debriding acute and chronic wounds, ulcers, cuts, abrasions and wounds including stasis ulcers, diabetic ulcers, post-surgical wounds etc.
Currently, Alkem imports the bulk drug for Oxum from Oculus facility and repacks it for the Indian market. With the joint venture, it will start manufacturing the product in India and will start exporting the same to Oculus for its worldwide market. However, the total investment in the new manufacturing facility of the joint venture company is not known. In the Alkem-Oculus joint venture, the US company's stake will be a mix of foreign direct investment and technology, it is learnt.
Alkem executives said, "We are in discussion with Oculus for an Indian joint venture to manufacture the product here. But no final decision has been made yet."
Oxum is currently marketed by Oculus as Dermacyn O Wound in the US and Europe and it has tremendous potential in India too.
According to industry analysts, the joint venture for exporting Oxum is bringing a very big opportunity for Alkem in its global business plan.
According to a recent market research report by Medtech Insight, a division of Windhover Information, there were over 90 million incidents of wounds in the US. Of these, over six million were chronic wounds, including arterial, diabetic, pressure and venous ulcers. The remaining 84 million were acute wounds, which follow the normal process of healing and commonly include burns, traumatic wounds, and approximately 67 million surgical incisions.
According to Medtech Insight, in 2004, the incidence of chronic wounds in the US was approximately 6.1 million, comprising 2 million pressure ulcers, 1.7 million arterial ulcers, 1.6 million venous ulcers and 800,000 diabetic foot ulcers. In addition to being expensive to treat, chronic wounds are debilitating, painful and can result in amputations and other serious consequences.
Clinical studies suggest depending on the severity of the wound, up to 43 per cent of patients with diabetic foot ulcers undergo an amputation. Furthermore, the five-year survival rate for patients undergoing amputations is 20 per cent.
