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Strides Arcolab’s subsidiary Agila Biotech has signed a joint venture agreement with US-based Pfenex for developing, manufacturing and commercializing six biosimilar products for the global market
Strides Arcolab ’s subsidiary Agila Biotech has signed a joint venture agreement with US-based Pfenex for developing, manufacturing and commercializing six biosimilar products for the global market and the first product would be launched in 2015 or 2016, Anand Iyer, CEO, Biotech-Strides Arcolab told CNBC-TV18.
Agila Biotech is 51% equity stake holder in the joint venture, however both parties will equally share decision making for product development and commercialization.
The lead product for joint venture Interferon beta-1b, a biosimilar to Betaseron, indicated for relapsing, remitting and secondary-progressive forms of multiple sclerosis and the product will commence human clinical trials by Q4
Iyer denied making any comments on the investment being envisaged by Strides Arcolab in joint venture. He said that the products will be manufactured at its upcoming Malaysian facility.
Below is the verbatim transcript of the interview
Q: First tell us how much money you guys are putting in into this and what does this mean in terms of business? How many products does it already have or will have?
A: I cannot at this point give you an exact figure as to how much money we will be investing. What we can tell you is that the way we have structured the joint venture is there are two parts to this agreement. There is an early joint development and licensing agreement under which we will be jointly developing six products. Many of these products are already in late stages of development. We will then manufacture, and conduct clinical trials out of our Malaysian manufacturing facility which is due to go on-stream at the end of 2014.
Q: So could you tell us how much and how soon could this be monetized? Could you quantify the monetization as well as the timeline?
A: I cannot quantify the monetization at this point in time. What I can tell you is that the first product we will be able to launch sometime in 2015 or 2016, because it depends on the clinical trial. As you know all the biotech products have to undergo clinical trials. Our plan is to do clinical trials in India, Malaysia where we are establishing a research and development and a manufacturing facility and also in few other emerging market countries simultaneously.
Strides Arcolab stock price
On March 11, 2014, Strides Arcolab closed at Rs 372.45, up Rs 0.35, or 0.09 percent. The 52-week high of the share was Rs 1050.00 and the 52-week low was Rs 343.80.
The company's trailing 12-month (TTM) EPS was at Rs 597.86 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 0.62. The latest book value of the company is Rs 828.22 per share. At current value, the price-to-book value of the company is 0.45.
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