Q: The market would try to asses the value of your R&D pipeline and estimates range anywhere between USD 250-500 million by the end of FY09, could you give the markets some inkling of how to value your pipeline?

A: The pipeline has been independently valued by three of the investment bankers. They are Lehman Brothers, Kotak and Enam. Their valuation ranges somewhere from about USD 480 million to about USD 600 million. So, that is one independent basis of valuation.

Lehman had said that the price according to their estimates should be in a region of about Rs 750 per share but ultimately the markets will find its own levels.

 Q: Could you also tell us when you are likely to receive the milestone payment from Eli Lilly, which is an important benchmark that investors would watch in your stock?

A: The milestone payments as we have worked out with Eli Lilly would be at the end of each clinical phase. The product has just gone into the first phase of clinical trials. So at the end of Phase I, we will get some milestone payment. The next milestone will be at the end of phase II. It will also be taken into the launch there would be the third and significant milestone along with royalty payments.

Q: Can you just confirm the quantum of the milestone payments that you are looking at though because our estimates throw up that you could get upto USD 110 million? Is that the first payment you might get, how much do you think that might get scaled up with and what estimates are you working with?

A: We estimate that over a period of time, we could get milestones in the region plus we would get royalty on sales on successful launch. Besides Eli Lilly, we also have almost similar arrangement with Merck also. These two collaborations can take to a further stage of development.  

Q: What exactly is the agreement with Merck would stand at? What might that throw up by way of milestone payments?

A: In the agreement with Merck, we will do the development of stage I and stage II. In stage III of clinical trails, they have an option to do it themselves or we may continue to do it. There, the milestone payments could be in the region of about USD 175 million as well as royalty on sales. Also, we will get some markets where we can sell these products.

Q: There has been some talk that you might seek to sell a part of Piramal Life Sciences to a private equity player or to a strategic investor, have you had any dialogue with any such party and do you think it is likely in the next six months?