Suven

HYDERABAD -- Pharmaceutical firm Suven Life Sciences Ltd. is scouting for a foreign partner to take its molecule SUVN-502 into human trials.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

Suven's struggle is illustrative of the kind of difficulties a small pharmaceutical firm faces in pursuing drug research and discovery.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

The trials could cost as much as $25 million – which is a big bite and a risky investment for a company of the size of Suven, with a current market capitalization of 2.34 billion rupees ($52 million) and revenue of 1.29 billion rupees ($28.6 million) in the fiscal year ended March 31, 2010.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

But he shifted his focus in 1993, when he decided to make Suven a research-and-development-focused company.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

With Suven's debt-equity ratio at 0.4:1, Jasti said the company can borrow 1 billion rupees $22 million.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

That paves the way for Suven to go ahead and file an investigational drug application with the U.S. Food and Drug Administration; this approval is a pre-requisite for a drug to be tested on humans.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

Potential partners are risk averse, and would rather take up molecules that already have had their proof of concept established, said Venkat Jasti, Suven's chairman and chief executive officer.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

Suven also is working on taking two more molecules into phase one clinical trials -- one to treat schizophrenia and another to treat depression.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

If Suven fails to find a partner, it means that the company would have to fund the trials with borrowed money.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011

Suven has a pipeline of 13 new drug candidates in pre-clinical stages, mainly related to the central nervous system.

Suven Seeks Foreign Partner, But Mulls Other Options Viswanath Pilla of Mint 2011