|Rediff India Abroad Home | All the sections|
Bristol-Myers to augment Indian outsourcing
Shruti Sabharwal in Bangalore | March 22, 2007 10:52 IST
Bristol-Myers Squibb, the $17.5 billion US-based pharma major, is set to expand its research outsourcing activities from the country. The company said the research work from India would be increased by at least three-fold in the next five years.
Carl P Decicco, vice-president discovery chemistry, pharmaceutical research institute, Bristol-Myers Squibb, said in Bangalore: "Currently, less than 5 per cent of our total discovery research work is done in India and we think this will increase to at least 15 per cent in the next five years," he said.
Bristol-Myers Squibb currently outsources its research to domestic companies such as Syngene of Biocon, Jubiliant and GVk Bio. Bristol-Myers Squibb has been working with Biocon since 1998.
According to Bristol-Myers Squibb, outsourcing research services is a part of the company's strategy to become more cost-effective. The company said it would increase its investments in India in the future. On Wednesday, Bristo-Myers Squibb took the pact with Syngene a step ahead by inaugurating a new R&D facility in Bangalore. The centre will conducting research for Bristol-Myers Squibb.
The research centre, at Biocon's new facility at Biocon Park, will house over 400 scientists to help advance Bristol-Myers Squibb's discovery and early-drug research.
The US-based company said the R&D facility would help them develop integrated capabilities in medical chemistry, biology, drug metabolism and pharmaceutical research. The companies, however, did not reveal the investment which went into the 150,000-sq ft facility.
This is the first dedicated facility Biocon has opened for any company and its Chairperson Kiran Majumdar said the company would look at entering into such agreements with other companies in the future.
Till now, Biocon had just dedicated floors or labs to research for other companies.
Shaw said, "Offering research services is a very important business model and this will become important in the future," Shaw said.