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Even as Pfizer withdraws from research into heart drugs

In a move that stunned many industry watchers, Pfizer announced its plans to withdraw from further research on heart drugs.

Its shocking that makers of Lipitor and Norvasc — two of the biggest ever drug brands — are not investing in further research for heart drugs, said a industry friend but I had to remind him that Lipitor is originally a Warner Lambert brand and Pfizer paid all the money to acquire that company, almost a decade ago.

Clearly, there is no evidence to suggest that a best-in-class compound will lead to more blockbusters for the same company.

Pfizer had its first big blow over a year ago when its ambitions came crashing with the failure of torcetrapib.

That drug was supposed to succeed Lipitor after its patents expired in 2011 and keep ringing in the moolah.

As is known, drug research is fraught with uncertainties and till the time the final documents come from the US Food and Drug Administration for a marketing approval, nothing can be said for sure.

In its latest move, Pfizer has said it will direct more energy into oncology research, Alzheimer’s disease, diabetes, inflammationImmunology, pain and psychoses (Schizophrenia) drugs.

Among all these disease areas, Pfizer may put most of its funds into oncology segment. Remember, oncology therapy market is set to grow to nearly $80 billion in the next four years according to the IMS Health statistics.

What’s more, there are hundreds of smaller companies aligning with ‘Big Pharma’ to develop their compounds into clinics.

In a September 25 note, Martin Mackay, Pfizer’s president of research, said the decision on restructuring research priorities is based on market opportunities that can give Pfizer a leading position.

While Pfizer may out-license its current portfolio of low-priority drugs, it may simultaneously seek in-licensing opportunities for companies that may have solid oncology pipeline.

Remember, Indian companies such as Dr Reddy’s, Biocon and Piramal Healthcare have been building an impressive pipeline of therapeutic proteins targeted at tumor growth.

Opportunities may not be ruled out for such companies.

Another critical decision on future was taken by Eli Lilly last week. Lilly and India’s Jubilant Organosys decided to form a joint venture for drug discovery research.

Lilly had earlier signed a deal with the same company but that looked more like an outsourcing job where Lilly transferred compounds for early stage development by Jubilant.

But, the current joint venture looks to be more concrete as both the companies have planned to transfer their respective molecules into the new entity and share intellectual property.

For a company like Jubilant that has transitioned from a chemicals company barely ten years ago, this is a big achievement.

Who remembers that Vam Organics of the past is now rechristened Jubilant! At Bangalore, Jubilant has set up a sophisticated research center and those who have seen it say it worth a look.

There is more on shifting research preferences. One of the savviest research-based drug companies, Ortho McNeil Jansen Pharmaceuticals — an arm of Johnson & Johnson, announced a tie-up with the Tata group-owned Advinus Therapeutics.

Driven by Dr Rashmi Barbhaiya and his former research colleagues from Ranbaxy, this entity is making waves.

Advinus will develop Janssen’s products up to early clinical development and then the co-partners will have the option to take its further development and commercialisation.
This could be a test case for the two initial targets and may be developed further into more research. Importantly, J&J had shut down its Australian research unit recently and had hinted that it will look at partnering opportunities in India.

It’s increasingly becoming clear. All the inhibitions about Indian research have faded over the last few years and the toughest of the quality parameters are being matched by Indian groups.

What Dr Reddy’s Labs started with its historic deal with Novo Nordisk more than ten years ago have become a routine now.

It will be sooner than later that an Indian company will have an intellectual property over a global blockbuster through a global partnership, if not completely on it own.

Pillman is an executive closely linked to the global pharma industry.