A big Scam in the Making Unearthed: CSIR had Perfect Plan to Cordon Off Millions to BR Shetty

In what seems to be a massive attempt by the Indian government to cover up the misdeeds of the much maligned UAE business tycoon, founder of NMC health and many of its sister concerns, BR Shetty, and to bail him out of his financial woes, a big scam has been unearthed recently.

The Council of Scientific and Industrial Research (CSIR), in collaboration with one of its constituent laboratories, Indian Institute of Chemical Technology (IICT), Hyderabad had announced end April that they will now be setting up indigenous plants in India with an integrated pharmaceutical company LAXAI Life Sciences to jointly develop and manufacture APIs and its key intermediates. This announcement was made shortly after the government announced a Rs 14,000 crore package to incentivise production of APIs in the country and reduce import dependence of this key pharma input from China.

A person close to the matter revealed, “LAXAI Life Sciences was to be one of the first few to commercialise these products manufacturing APIs and intermediates at USFDA/GMP approved plants held by LAXAI through its subsidiary, Therapiva. Vamsidhar Maadi Patla, CMD, LAXAI Life Sciences and Nikhil Baheti, CFO, Therapiva were propped to provide just the ideal leadership with extensive experience and expertise in pharma to spearhead this breakthrough R&D, but it turned out that this was just a big show put up to mislead unsuspecting public into thinking what a grand deal this would prove to be. The real plan was to help BR Shetty regain a foothold in his crumbling empire.”

A closer inspection of their websites revealed only projections and capabilities with absolutely zero reference to any research and manufacturing that may have happened at their end. When these firms were contacted, however, no one came out in the open to comment.

An inside source, on conditions of anonymity said, “Since this was to be a collaboration with CSIR, these firms were projected to be much better than the others in pharma research and development. A lot of noise was made about the formidable credentials of these firms so that no one would question either their background or the basis of this deal. No one would ever suspect that the antecedents of these firms could be traced back to BR Shetty.”

Seemingly no due diligence was followed by CSIR in going ahead with this collaboration. When, Information and Credit Rating Agency of India Limited (ICRA India), an independent and professional investment information and credit rating agency, assessed Therapiva’s documents, it was ascertained that it was a firm immersed in debts with very poor net worth.

On further investigation, it emerged that both the companies were owned by a certain Omnicare Drugs India Private Limited, Hyderabad which had 61% stake in the companies. The parent company of all these establishments was traced to be Neopharma Holding Pvt. Ltd. based out of the UAE, one among the many business ventures of BR Shetty.

The source added, “Shetty has been closely associated with the RSS ever since the Jan Sangh days and has openly pledged his support to the PM Narendra Modi claiming that he will be investing billions of dollars in healthcare infrastructure in Varanasi as well as healthcare, education, agro products, tourism and film city projects in J&K proclaiming this to the PM in the many public events organised by BJP, that he participated in. With the PM having such an ardent follower in Shetty, it seems he is now lending as much covert support as he can to Shetty so he can go back to being the czar of his kingdom.”

Shetty flew to India in February to care for his ailing elder brother, who has since passed away. While Shetty claims that he has ‘launched his own legal and forensic investigations and will share the results with appropriate authorities’, he is grappling to pay off a debt of $6.6 billion, far higher than the $2.1 billion it had initially revealed. Creditors have moved against the top management, with Abu Dhabi Commercial Bank (ADCB) as well as the bank of Baroda, India filing criminal cases against him and NMC having been placed under administration given that the real debt is approximately 3.5x the reported amount.

Since, the announcement by CSIR came just 10 days after ABCD filed a criminal complaint against Shetty and just about 3 weeks after London banks froze all his bank accounts, there seems to be an unmistakable nexus between the government and Shetty to not just keep him afloat but also to help him tide over his financial woes with the taxpayers money. There seems to be definitely much more going on behind the curtains, than what is meeting the eye!

Wockhardt Announces COVID-19 Vaccine Partnership with UK Government

Wockhardt, the global pharmaceutical and biotechnology major today announced that it has entered into an agreement with the UK Government to fill finish COVID-19 vaccines. The manufacturing will be undertaken at CP Pharmaceuticals, a subsidiary of Wockhardt based in Wrexham, North Wales.

As per the terms of the agreement the company has reserved manufacturing capacity to allow for the supply of multiple vaccines to the UK Government in its fight against COVID-19, including AZD1222, the vaccine co-invented by the University of Oxford and its spin-out company, Vaccitech and licensed by AstraZeneca.

Dr Habil Khorakiwala, Founder Chairman of Wockhardt emphasised, “The pandemic of COVID-19 is a challenge for all and needs a concerted effort to overcome. We are proud to be collaborating with the UK Government to make vaccines available and the arrangement brings in a huge sense of purpose and pride, it upholds our ongoing commitment to fight against such a pandemic of global human importance. As a global organisation, we are focussed and committed to assist in mitigating the worldwide impact of COVID-19.”

Alok Sharma, Secretary of State for Business, Energy and Industrial Strategy, Government of U.K said, “Ensuring the UK has the capability to research, develop and manufacture a safe and effective vaccine is critical in our fight against coronavirus.

“Today we have secured additional capacity to manufacture millions of doses of multiple Covid-19 candidates, guaranteeing the supply of vaccines we need to protect people across the UK rapidly and in large numbers.”

Speaking about the contract Ravi Limaye, Managing Director Wockhardt UK said, “We are immensely proud to have been selected to partner with the UK Government on this project. In doing so we are taking a lead role in the nation’s fight against pandemic of COVID-19”.

“We have a sophisticated sterile manufacturing facility and a highly skilled workforce. We expect to start delivering the first doses of the vaccine later this year.” He added.

The government has reserved one fill and finish production line for its exclusive use for the next 18 months in order to guarantee the supply of vaccines required to fight COVID-19 in the UK.

Dr Murtaza Khorakiwala, Managing Director and Global CEO of Wockhardt adds, “The arrangement with the UK Government for manufacturing vaccines for COVID-19 showcases our global strength in world class sterile injectable facilities and capacity. With four decades of expertise and experience behind us we are able to quickly scale to manufacture and assist in mitigating the worldwide impact of COVID-19.”

Kate Bingham, Chair of U.K. Vaccines Task Force said, “Never before have we needed to find and manufacture a vaccine at this speed and scale in order to protect the UK population. We have made significant progress in securing a diverse portfolio of potential vaccines and treatments for Covid-19, adding a fourth vaccine candidate from GSK and Sanofi last week. However, discovering a successful vaccine is only part of the solution, we also need to be able to manufacture it. Fill Finish is a critical step in the process to get the vaccine in a form to be given to patients. The agreement with Wockhardt will boost our capability to ensure that from the moment a successful vaccine is identified we will be able to produce the quantities of vaccine required, as quickly as possible, for the people who need it.”

Wockhardt is a global pharmaceutical and biotech organisation that brings affordable, high quality medicines to market. In the UK, Wockhardt is one of the largest suppliers into the NHS for over 20 years, has had a presence in Wrexham for over two decades and employs over 400 people at its 612,000 square feet high-tech manufacturing facility.

About Wockhardt:

Wockhardt is a research based global pharmaceutical and Biotech Company headquartered in Mumbai, India. Wockhardt’s New Drug Discovery programme has focussed on the unmet need of making anti-bacterial drugs effective in mitigating untreatable superbugs. Wockhardt is the only company in the world that has received QIDP Status (Qualified Infectious Diseases Programme) from the US FDA for six anti-bacterial discovery programmes – three of them are Gram Negative and three Gram Positive and are effective against untreatable “Superbugs”. Wockhardt has a dedicated and experienced Drug Discovery team as part of its clinical research organisation.

Wockhardt employs over 7,000 people across 27 nationalities with a presence in the USA, UK, Ireland, Switzerland, France, Mexico, Russia and many other countries. It has manufacturing and research facilities in India, the USA and UK and a manufacturing facility in Ireland. Wockhardt has a significant presence in the USA, Europe and India, with around 73% of its global revenue coming from international business.

Wockhardt UK specialises in the supply of generic and speciality medicines and is one of the leading suppliers to the NHS. They have a portfolio of over 250 product lines which are available in a wide range of preparations, including tablets, capsules, injections and liquid medicines.

The UK manufacturing site based in Wrexham, North Wales manufactures a number of sterile injectable products covering a wide range of therapy areas including diabetes, anticoagulation and pain management. The products are available in many forms such as vials, cartridges and ampoules including lyophilised (dry powder) products. In addition to their own Wockhardt branded products, they also provide contract manufacturing services for companies all around the world.

Takeda India Contributes ₹1.2 Crores to COVID-19 PM Cares Fund

Takeda India, part of the Takeda Pharmaceutical Company Limited, a global values-based, R&D-driven biopharmaceutical leader, has announced a donation of ₹ 1.2 Crores to the PM Cares Fund to support India's fight against the novel coronavirus disease, COVID-19. The contribution to the PM Cares Fund aims to support patients and the Government to contain the spread of the disease. Bringing innovative therapies to patients, supporting them through their disease journeys, and playing its part in helping to strengthen healthcare systems is fundamental to Takeda's operating model, especially in Emerging Markets like India.

Koki Sato, General Manager, Takeda India, commented: "Takeda remains committed to standing together and supporting our communities in India during this unprecedented health crisis. As a company, we have always aimed to operate in-line with our Values - Integrity, Honesty, Perseverance, and Fairness - and will therefore never forget that our principal role in society is to serve patients. Together with key authorities and partners we look to addressing some of the world's most pressing and unmet health challenges, including COVID-19."

Takeda India has worked with credible NGO partners in the past to support patients and strengthen front-line caregivers through training programs, as part of their corporate social responsibility (CSR) mission.

Globally, Takeda works towards preventing disease, training health workers, strengthening supply chains, and improving access to quality diagnosis and treatment. The company actively partners with world-class organizations and NGOs with proven track records to address global health problems in innovative and enduring ways.

About PM Cares Fund

Keeping in mind the need for having a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected, a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’ has been set up.

About Takeda India

Takeda India is part of Takeda Pharmaceutical Company Limited's group of companies. Locally, the company currently focuses on the areas of Rare Diseases, including Hemophilia and Lysosomal Storage Disorders and plasma-derived therapies. Takeda has a presence across the Indian subcontinent, including in Sri Lanka, Nepal, and Bangladesh.

About Takeda Pharmaceutical Company Limited

Takeda Pharmaceutical Company Limited (TSE:4502/NYSE:TAK) is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to bringing Better Health and a Brighter Future to patients by translating science into highly-innovative medicines. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Diseases, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people's lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries.

Is Infosys eyeing acquisitions in the US?

Indian software major Infosys Technologies Ltd expects to find acquisition opportunities in the US during the downturn, co-chairman Nandan Nilekani was quoted as saying.

"Acquisitions will definitely be very accessible in this market from a price point of view," Nilekani told the Wall Street Journal in an interview. "If it makes sense, we'll do it."

Companies that operate in the healthcare and pharmaceuticals sectors might make particularly interesting targets, he said, adding that Infosys has $2 billion in cash and no debt.

In the interview, Nilekani reiterated Infosys's earlier guidance of about 12 per cent revenue growth for the fiscal year ending March 31. That would be a sharp deceleration from growth of 35 per cent, as measured by the US accounting rules, in the year ended March 31, 2008.

Nilekani told the Journal that potential customers are holding back both because of the economic crisis and a rise in protectionist sentiment.

On the economic crisis, Nilekani said "I've never seen this level of lack of clarity." He said executives are "more focused on short-term tactical issues" than making bigger decisions about outsourcing.

In response, Nilekani said Infosys is working with customers on alternative payment arrangements, including some that would link fees to business results. Other customers are asking to pay on a per-transaction basis, rather than a lump sum for a system.

Nilekani said rising protectionist sentiment in the US also is affecting customers' decision-making about outsourcing.

The economic stimulus bill, for example, includes a provision preventing participants in the US' financial bailout programme from hiring workers with H-1B visas, which are commonly used by the non-US outsourcing companies.

"Political issues have become more pre-eminent in our conversations," he added.

Partly for that reason, he told the journal that he does not know whether more the US firms will lay off domestic workers and move more jobs to India, as International Business Machines Corp plans to do, Nilekani said.

Agencies

Are layoffs raising? Reports say 9,000 job vanishing each day

More and more people are becoming unemployed this year, with nearly 9,000 jobs vanishing worldwide on an average each day in January.

As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.

Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.

Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.

Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.

Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.

The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.

Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.

Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).

Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.

Agencies