India's Cadila scouts Big Pharma partners to launch new diabetes drug abroad

Cadila Healthcare wants to partner with Big Pharma. The Indian drugmaker won domestic approval for a brand-new drug for diabetics, Lipaglyn, that it's prepared to launch in its own country later this year. But it wants to take the drug worldwide--and into blockbuster territory--with the help of a marketing partner.

Cadila Chairman Pankaj Patel has high hopes for Lipaglyn, approved to treat high LDL cholesterol and triglycerides in diabetics, MoneyControl reports. "We expect this to be a blockbuster drug, which means over $1 billion sales a year, when the drug is sold globally," Patel said.

The once-daily pill "has a beneficial effect on both lipid parameters as well as glycemic control," Patel said in a statement. In studies, Lipaglyn patients saw reductions in triglycerides and LDL cholesterol and increases in HDL, or "good," cholesterol. Fasting glucose and HbA1c levels also improved, the company said.

At home, Patel expects to build Lipaglyn to 1 billion rupees within three years--or about $17.6 million. So Cadila has to go global with the drug even to recoup its development costs in a timely way. The company says it spent 8 years and $250 million developing it.

Cadila will have to spend to earn abroad, of course. The company says it's planning to invest $150 million to $200 million to launch Lipaglyn in overseas markets over the next 3-5 years. It's actively looking for marketing partners, Patel says.

Cadila is no stranger to Big Pharma. The company set up a joint venture with Bayer in early 2011 to market both companies' products, capitalizing on the Indian drugmakers' local distribution and both companies' marketing and sales staffs. Cadila also had an R&D deal with Eli Lilly ($LLY), aimed at developing heart drugs for the Indian market, but that partnership ran into trouble early last year, reportedly because of differences of opinion on trial costs and development strategies.

The Indian company's successful attempt at a new chemical entity shows that it can get products through the pipeline, however; Cadila now says it's looking at launching two more brand-new drugs within 7 years and has 8 compounds in clinical development.

- see the company release
- read the MoneyControl story