Cadila signs drug development deal with Eli Lily

Cadila has signed a drug development agreement with Eli Lily in which Cadial will do the initial part and take the molecule all the way up to phase II after which Eli Lily will take over and develop and bring it to the market. Thereby, Cadila is entitled to receive US$ 300 million in terms of milestone payment and this agreement could continue for about six years. Though there is no clarity yet as to when they will receive milestone payments. These drug development processes can be very long and not all molecules actually hit the market, so we do not know when the molecule will come out but the positive thing is that it builds a kid of confidence capabilities of Cadila. Cadila already from its own molecule pipeline has six molecules out of which two are phase II trials. Basically it’s the confidence on research and development (R&D) capabilities of Cadila, because this USD 300 million is not going to come right now. With its out performance in the past three months Cadila’s results have also been good despite its high debt. Consistently it has been a good performer; it has garnered good market share in US through inorganic as well as organic routes and also its own player in domestic markets which has helped it sustain its growth