See 25% growth in CRAMS biz next year: Suven Life Sciences

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In an interview with CNBC-TV18, Venkat Jasti, Chief Executive Officer of Suven Life Sciences , spoke about his outlook for the company.

 

Below is a verbatim transcript of an exclusive interview with , Venkat Jasti on CNBC-TV18. Also watch the accompanying video.

Q: If you could first talk about a couple of your new molecules. You have one new molecule in the making for a depressive disorder. When will you bring this to clinical trial and how much by way of funds have you infused into this?

 

A: We have about 13 molecules in various stages of the development in our drug discovery pipeline. We have finished phase I. We are doing the enabling studies to go into the proof of concept for SUVN-502.

 

In addition to that, three other molecules are going to move into phase I clinical trial. This SUVN 502, we need for phase II a clinical trial, is proof of concept. It is a 400 patient trial. It is a six months trial and a global trial. It requires about USD 20 million, which will be at the end of the calendar 2010. So we will be looking to raise these funds sometime in the middle of the year.

 

Q: Would you consider out-licensing any of these molecules?

 

A: We are in the process of negotiating with a couple of innovators. The way the situation in the global scenario is being risk adverse, drug discovery and high risk base business, everybody is looking at the proof of concept level candidates unlike before. Two years ago, they use to in-license at the pre-clinical stage or the phase I stage.

 

All the molecules are going out of patent by 2012. The market potential for this is huge. Today there is an announcement by Johnson and Johnson, their molecule for the disease modifying if it goes into the market this year, which they expected, it will be a USD 13 billion sales. However, it has gone two years behind schedules because of the enrolment problems in the clinical trials. So this is a long run processes and it is a huge potential. Hence, we are in a very good shape because there are only two other molecules in the whole space at this time.

 

Q: If you can discuss a little bit about your collaboration with Eli Lilly. You have already got one milestone. Any idea about when you are likely to receive the next?

 

A: We expect the second milestone from Eli Lilly in the fag end of 2010. The requirement at the pre-clinical stage itself is being raised by FDA. Hence, our target of getting it in the middle of the year is postponed to the end of the year.

 

Q: How is your Contract Research and Manufacturing Services (CRAMS) business shaping because last time your revenue that segment dipped due to postponement to many of our projects? What kind of revenue outlook do you have for that business in the next couple of quarter?

 

A: 2009 is a better sweet year. The volumes have come down in CRAMS, but at the same time a lot of quality development has taken place in the drug discovery field. With New Year begin for the US and Europe, there is a new guidance. We expect the CRAMS business to grow by about 20-25% next year.