In a move which could put around 150 scientists in a spot, Piramal Healthcare has decided to shut down its drug discovery and Goregaon-based research division in western suburbs of Mumbai.
The scientists have been asked to relocate to other units across India which are based in Chennai, Hyderabad, Ahmedabad, Indore or Prithampura. “Alternatively, if they are not willing to shift to other locations, we are offering them a voluntary option to quit along with giving them adequate compensation,” said Swati Piramal, vice chairperson, Piramal Enterprises Ltd. Whether the scientists quit or stay on will be known over a period of over two to three weeks, she said.
The move comes in the light of restructuring and consolidating research facilities within the country. The research division was running into losses for last two years.
Piramal confirmed, “We have to balance investment in research for new drugs along with commitment to our shareholders. Recurring losses have compelled us to be answerable to our shareholders and therefore we are in the process of relocation."
The scientists will be retained to perform jobs best suited to their expertise or may have to take on roles in departments such as pharma solutions, critical care, contract research and manufacturing services or regulatory functions.
Over the last 17 years, the company has invested over Rs 2,000 crore in research and development of new chemical entitities (NCEs) in the fields of infectious diseases, inflammatory disorders, neurosciences, cardiology, oncology and metabolic disorders including diabetes.
NCEs are new single or combination drugs which have not been previously approved by drug regulators like the US- Food and Drug Administration (FDA), and provide important new therapies to patients.
The pharma company made its inlays into discovery of new drug molecules in 1998 and from 2000 onwards have systematically discontinued research of new drugs related to neurosciences, infectious diseases, inflammatory disorders and cardiology, due to the inability to make any positive headway in drug discovery.
Currently, eight clinical trials – five in drugs related to cancer and three in metabolic disorders are underway. However, the company at the moment has decided not to venture in research for new drug discovery in these fields at any of its units in India.
However, it has been making progress at developing drugs related to radiopharmaceuticals and anaesthesia. “Neuraceq, which is an injectible to detect alzheimer's diseases as well as three anaesthestic drugs have been developed in our units abroad. However, we have not struck luck with any new drug discoveries in Indian units. Therefore, we will be redirecting focus on radio pharma and anaesthesia research,” said Piramal.
The pharma company has a total employee strength of 6000, with seven manufacturing and R&D units in India and four units abroad – two in UK, one in Berlin, Germany and one in New Jersey, US.
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