Zydus Cadila & Karo Bio of Sweden sign research agreement for a novel drug to treat inflammatory diseases

Cadila Healthcare Ltd has announced that the Company and Karo Bio of Sweden, a drug discovery and development Company specialising in nuclear receptors have initiated a three year strategic collaboration in the area of drug discovery and development. Both Companies will collaborate to discover and develop novel, selective glucocorticoid receptor (GR) modulators for the treatment of inflammatory diseases.

Glucocorticoids are used to treat many different inflammatory conditions such as rheumatoid arthritis, inflammatory bowels disease, psoriasis and asthma which together represent a market potential of over USD 10 bn. These powerful anti-inflammatory agents with long term use could, however, lead to the development of unwanted side effects like obesity, diabetes and osteoporosis. Thus, there is a great need for new, selective glucocorticoids devoid of one or more of these side effects.

Karo Bio will leverage its expertise in nuclear receptor drug discovery including structural biology, drug design and compound characterisation. Zydus Cadila will leverage its expertise in carrying out a focused drug discovery and development programme, starting from pre-clinical candidate selection, tiling of the Investigational New Drug Application and undertaking pre-clinical studies and human clinical trials. Both parties will equally share risk and rewards for the collaboration programme.

Speaking on the joint research programme, Mr. Pankaj R Patel, Chairman and Managing Director, Zydus Cadila said, "We are excited about this collaboration with Karo Bio. One of the key research areas of focus at our Zydus Research Centre is to develop novel GR modulators that are devoid of side effects. By combining the strengths of both, Karo Bio and Zydus Cadila, we should be able to design and develop novel molecules, which would eventually replace currently available steroids for treatment of inflammatory disorders. This joint research endeavour will help address an unmet healthcare need."

The glucocorticoid receptor mediates both the anti-inflammatory effects and the side effects. Karo Bio and Zydus Cadila have now initiated an intensive research programme aimed at discovering selectively acting glucocorticoids. The design of new selective compounds will be based on Karo Bio's detailed knowledge about structural biology aspects of ligand-receptor interactions.

Zydus Cadila and Prolong Pharmaceuticals ink pact for collaboration in Drug Discovery and Development

Cadila Healthcare Ltd has informed that the Company has entered into pact for collaboration for development of a next generation therapeutic protein, 'PEG-EPO', for the treatment of severe anemia with Prolong Pharmaceuticals Inc., a US-based, venture-backed drug delivery research and development Company.

In this regard the Company has issued the following Press Release:

"Zydus Cadila, an innovative global pharmaceutical company, and Prolong Pharmaceuticals Inc., a US-based, venture-backed drug delivery research and development Company, have announced the collaboration for the development of a next generation therapeutic protein, 'PEG-EPO', for the treatment of severe anemia.

Severe Anemia, is a condition where the hemoglobin (Hb) level or number of circulating red blood cells (RBCs) is significantly reduced. This is common in chronic renal failure (CRF), cancer patients undergoing chemotherapy, some chronic inflammatory diseases, heart failure, surgical settings and critically ill patients. The first generation drug, EPO, did wonders to the treatment of this condition. However, new advances in therapy can improve EPO's therapeutic profile, offer greater convenience, and lower treatment costs. PEG-EPO promises to be a third generation drug.

The Zydus-Prolong pact seeks to increase productivity in the drug development of this next generation therapeutic protein by leveraging the combined strengths of both Companies. As per the agreement, both Companies will utilize Prolong's differentiated PEGylation technology to make PEG-EPO. This joint development will help in developing an optimized drug candidate with improved therapeutic properties. Both partners will also be equitably sharing risk and reward for this collaborative programme.

PEGylation is the only FDA-approved protein delivery technology that transforms proteins into superior drug products, by attaching a polyethylene glycol ("PEG") polymer to a therapeutic protein. This process results in an improved product with significantly enhance potency, fewer side effects, and a reduced dosing frequency.

Zydus Cadila will leverage its expertise in carrying out a focussed drug development programme, starting from pre-clinical candidate selection, filing of the Investigational New Drug, undertaking pre-clinical studies and human clinical trials and marketing it in mutually agreed upon territories globally. The collaborative programme will bring an edge to Zydus' global biologics strategy with the introduction of an improved biologic product.

"Prolong is excited about this unique development partnership with Zydus, given their focus and strong in-house capabilities on drug development," commented Dr. Abe Abuchowski, President and COO. "This collaboration will also enable Prolong to capitalize on the cost effective drug development capabilities that India offers". YES Bank was the strategic advisor to Prolong for the transaction.

Speaking on the occasion, Pankaj Patel, Chairman and Managing Director Zydus Cadila, mentioned "This deal marks Zydus's foray into the area of novel improved biologicals. There is a strong unmet medical need in this space, and we are committed to discover, develop and provide better as well as safer alternatives to patients at affordable prices."

Cadila Healthcare Q2 Results

Cadila Healthcare Ltd has announced the following Un-Audited results for the quarter ended September 30, 2007:

The Company has posted a net profit of Rs 713 million for the quarter ended September 30, 2007 as compared to Rs 655 million for the quarter ended September 30, 2006. Total Income has increased from Rs 4014 million for the quarter ended September 30, 2006 to Rs 4535 million for the quarter ended September 30, 2007.

The Consolidated results are as follows:

The Group has posted a net profit of Rs 801 million for the quarter ended September 30, 2007 as compared to Rs 705 million for the quarter ended September 30, 2006. Total Income has increased from Rs 4751 million for the quarter ended September 30, 2006 to Rs 6097 million for the quarter ended September 30, 2007.

Religare - Cadila Healthcare

Religare has a buy on Cadila Healthcare at CMP: Rs 320 with a target of Rs 416

Steady growth; Pantoprazole verdict may upset FY09 estimates

Religare believes CHL's growth drivers remain strong and estimate that the company will witness an earnings CAGR of 20.7% to Rs 3.4bn over FY07-FY09.

Merrill Lynch - Cadila Healthcare

Merrill Lynch has a BUY on Cadilla Healthcare with a target price of Rs 425

It trades at 15.4x FY08E, 13.x FY09E which is 25% discount to the sector peers

Cadila Healthcare Limited

Cadila Healthcare Limited has informed the Exchange regarding a press release dated September 06, 2007, titled "Zydus Cadila receives USFDA approval for Carvedilol Tablets Launches product on the very same day".