Ranbaxy Strengthens Ties With Injectables Specialist Zenotech

Ranbaxy is solidifying its position in specialty biopharma products by expanding its alliance with specialty injectables firm Zenotech.

The Gurgaon, India-based pharmaceutical company announced it increasing its equity stake in Zenotech from 7 percent to 45 percent Oct. 3, building on a two-year relationship between the two Indian firms.

"The increasing importance of biologics in the global pharmaceutical industry and the opening up of generic biologics in the regulated markets makes it opportune for Ranbaxy to enhance its presence in this area. Specialty injectables ... includ[ing] oncology products, constitute an attractive segment that underpins our strategic intent," Ranbaxy CEO Malvinder Mohan Singh said.

Zenotech Laboratories, which has R&D facilities in Hyderabad, India and New Jersey and manufacturing plants in Hyderabad, is "a specialty generic injectables company with strong expertise in the area of biotechnology." The firm's "predominantly high value" portfolio is focused on oncology and anesthesiology.

Adding the Zenotech products to its portfolio fits with Ranbaxy's plans to develop a biosimilar franchise.

Ranbaxy and Zenotech's previous relationship has involved investment aimed at filling the larger firm's pipeline, an oncology deal that would give Ranbaxy rights to the generic formulations in the U.S., and a global development and marketing deal for a biosimilar version of Amgen's Neupogen (filgrastim), known as granulocyte colony stimulating factor (GCSF) ("The Pink Sheet" DAILY, Feb. 8, 2007).

In announcing the expanded alliance, Ranbaxy is highlighting Zenotech's three Indian approvals for oncology biopharmaceuticals: GCSF, granulocyte macrophage colony stimulating factor (GM-CSF) and interleukin-2. Zenotech has seven biopharmaceutical products in different stages of its pipeline, "all developed in-house."

Ranbaxy is also reaping more near-term benefits from its investment in Zenotech. The firm plans to file with FDA seven ANDAs from Zenotech facilities "in the coming few months."

Ranbaxy has been actively pursuing dealmaking in recent months. The company was recently rumored to be a potential suitor for specialty pharma company Bradley Pharmaceuticals ("The Pink Sheet" DAILY, Aug. 27, 2007). Ranbaxy also made a bid from Merck KGaA's generic drugs unit, which was later acquired by Mylan ("The Pink Sheet" DAILY, March 13, 2007).

In addition to the generics and biosimilar markets, Ranbaxy is augmenting its investment in the branded drug business and looking to become a discovery-research firm. Its U.S. subsidiary started to focus on the brand sector five years ago.

In May, Ranbaxy acquired U.S. rights to a group of dermatology brand products from Bristol-Myers Squibb ("The Pink Sheet" DAILY, May 29, 2007). In April, Ranbaxy and partner GlaxoSmithKline announced the first clinical candidate to be developed under their discovery alliance ("The Pink Sheet" DAILY, April 3, 2007).

-Mary Jo Laffler

This article is reprinted from "The Pink Sheet" DAILY – Oct. 5, 2007

Click here to start your 30-day, risk-free trial of "The Pink Sheet" DAILY – Immediate business intelligence from the company and product level up.

© FDC Reports 2007 - All Rights Reserved