India's Jubilant Organosys and Eli Lilly of US have agreed to extend their four year old drug discovery collaboration by five years. Under the extension agreement, Jubilant will receive research funding, success-based discovery and development milestones.
The two firms had signed the original agreement in late 2005.
Jubilant reported a net profit of Rs55.49 crore in Q2 September 2009 as against a net loss of Rs24.39 crore in Q2 September 2008. Sales were down 7.6 per cent to Rs627.36 crore in Q2 September 2009 over Q2 September 2008.
Jubilant manufactures a range of chemicals including pharma and life science chemicals, performance chemicals and industrial chemicals.
Responding to a question regarding the kind of revenue inflows the company was expecting with the deal on a CNBC TV-18 interview, Hari S Bhartia, co-chairman and managing director of Jubilant Organosys said the company does not put the number because it does not disclose it separately.
He added that with the company's pioneering effort has proved that in drug discovery in India one can run large portfolios and deliver candidates at different levels.
He said in the next five years collaboration would focus on multiple therapeutic areas and a large part of it formed research funding. He added that the company received milestone payments which are risk based.