Natco Pharma wants to make it big in discovery research, and hopes to develop and bring to market an indigenous drug.

Sharing his vision for the three-decade-old, city-based company, Chairman and Managing Director VC Nannapaneni told BusinessLine : “For the Indian pharmaceutical industry as well as for us at Natco, the next big thing is discovery research. We are working towards realising the dream of having our own molecule.” 

The industry veteran, who returned from the US and set up Natco in 1984, feels India has already arrived on the global pharmaceutical map.

It has made a huge impact in generics and in bringing down costs to affordable levels. “India is very much active in the discovery research front. Selecting the right drug and target disease to develop molecules assumes significance,” said Nannapaneni.

He added that there is scope for entrepreneurship in new drug discovery, especially for start-ups that can focus on specific areas to develop basic molecules. The government has to foster the movement, and private investors and Big Pharma should also support various stages of drug discovery, he said.  

In-house development Natco, which has lined up about ₹300 crore to invest in new units and to enhance existing capacities, is trying to leverage its existing strength in oncology. It has “a couple of molecules” in phase II of drug development, and these are likely to bear fruit in two-three years.

“These are being developed in-house entirely,” the Chairman said.

Why did the company choose the oncology niche for discovery research?

The regulatory requirements and time frames associated with the diseases are relatively easier to handle, explained Nannapaneni.

“Further, we have better success rates in the segment. If we do it, we can also apply the pricing policy that Gilead Sciences has put in place. It is customised for the market and financial profile of patients,” he added.

Bringing down costs The cost of drug development could also be significantly brought down using advanced technology. The company has forged research collaborations with various universities and other institutions.

For example, a tie-up with the University of Illinois in the US has led to significant strides in the development of a molecule to cure brain tumours.

“There is positive progress on the drug, which is at pre-clinical stage now,” Nannapaneni said.

Natco Pharma, which introduced novel sustained released technology for drug delivery in the mid-1980s, has made several strides forward.

It has been engaged in patent challenges against Big Pharma on oncology drugs — it scored a win in the case of Glivec, Novartis’ blood cancer drug.

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