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Feb rebe ale
for India’
outsourced research Is the buzzword, Dr AV Fama Rao ought to be
icon. He runs india’s onty
‘Scientific research fab as a business venture. His company Avra Laboratories provides technical services,
process technologies and synthesis of new chemical entities ior world's leading drug companies like GD
Seatle, Piizer and Bristol-Myers Squibb. From extremely humble origins of rural Andhra Pradesh, Dr Rama
Rao became an innovative scientist with National Chemical Laboratory in Pune and later turned the Indian
Institute of Chemical Technology into a centre of excellence. His outstanding research work has fed to
30 patents, 50 drug technologies for the industry and 109 PhDs. While his outspoken and straightforward
nature has upset a few mediocre people, Dr Rama Rao has had a fong triondship with Dr YK Hamiod of
Cipla, synthesising the anti-AlDS drug that fetched global tame for Cipla and Dr Hamied. Excerpts trom
‘Dr Fama Fao's interview with MoneyLiFE editors Sucheta Delal and Debashis Basu at his lab in Hyderabad.
ML: Can you tell us a little about your background and
vour childhood?
AVR: Ihave seen your other interviews whers everybody
seems 10 be a ropper. Let me be very frank. I was never a
copper in school, My father was a stare
employee who got transferred Frequently. 1
a the fir
child and used vo move around with may parents, Usaally
by the time {finished half a year, my father was
transferred and I often didn't go t0 school in the second
half at all I was happy spenling most of my vime
playing. ‘Then, I scraped through the sixth standard and
gor into the high school
Since my father ased to get transferred frequently, Loften
stayed with my grandparents at Guntur. But when 1 was
in my fourth standard, | had a friend who played cards
Now, in Andhra Pradesh, everybody has thre
laying cards, drinking and wemanising. We used to
bbunk schoo! in the aftemeon and play cards behind a
temple. I somehaw got through the exams because
Thad a eecrifie memory.
ML: When did you get serious about studies?
AVR: The year I was supposed to appear for my SSC,
1 realiged what I was doing, By then, Iwas sent to live
wich my aunt who was very poor. My father used to
send Rs40/eveey month for my upkeep and they managed
the house with that money. Ie made me tealise, for the
first time, that if did not have proper
have had it, We used to have just one meal
idleftovers in the evening,
ML: How did this ecalisation change you?
AVR: I used to dominate everything that Hdl. L was nota
igreat football player, but | was the team leader. I also
realised, for the first rime during. my SSC exams, that
scoring marks ie noe diffieule and L topped my school. At
thac time, my father used to say that he Would get me a
let's job when I pass my SSC.
Because I dlidn't study regularly, I had become weak in
mathematics and L opced for biology, physics and
chemistry at the intermedkate level bur dida’t know that
students with biology went on to do medicine. I cassally
applied 1 « medical college in Gi
the 50 seats were lor merit students, ranked 14¢h or
15th. My father could nor afford to send me onesie
Gantur. So, alehough Vishakapatnam {medical college)
hhad more seats, {could not go. I did’ feel bad, | had, by
then, started liking chemistry, so I joined AC College in
ntur for my BSe. Getting first class was a big thins
those days and I was a topper. I was also the college
student leader Our principal bebeved that student leaders
are rogues and don't study, So whenever he got
‘complaints from che faculty, he always called for my
marks. | used to get away with a warning, since I was a
topper. One had to gp out of che seate for a Master's
dlegrce those days and most people wene to the Benaras
Hindu University. Since we were nine siblings, there was
nno money for me to go, My father had asked me co apply
for the post of a clerk and [get the job, but { yas
reluetant to join,
‘ML: What did you wane to do?
AVR: I wanted to study more. But I knew the fail
situation, so [decided to join AC College as a chemistry
demonstrator for one or two years. Those days, post:
ageadaaces applied for the demonstrator’: job, but
sometimes they 100k graduares too, The evening before
the interview, I went to meet the Head of the Department
(HOD) hoping be would put in a good word for me, He
neur where only 13 of
did the opposite. He said, “You area student leader and
don’t deserve 10 be a teacher”. Anyway, [got the job. A
year later, [was selected as a chemist in the Agriculsaral
College at Bapatia. Ie is there that [realised that a BSe
was not enough and roll my father thae 1 wanted to study
further. I saw an advertisement of the University
Department of Chemica! Technology, Bombay. | applied
aand gor through. [landed in Bombay on a rainy day like
Sharma {Prof MM Sharma, see inteeview in Money IFE
“th December issue}. I didn’t know the city and someone
‘op the train asked me to get off at Dadac. Look @ taxi,
which took me to V{TTand dumped me there. | then
walked in the rain to the hostel. That is how I stated,
| wanted to do pure chemistry and not engineering. Those
clays, Prof K Venkataraman was the best in organic
‘chemistry. He was at the National Cheraical Laboratories
(NCLi, Pune. [applied to do my PRD under him, even
though many students took 8-10 years to complete their
PRD with him. 1 was abo gecting job offers from
‘companies ike Glaxo and Ptizer. Nobody other than me
went for research from my hateh.
ML: Did you know Prof Venkataraman eatlier?
AVR: No, [din’t; but he was a former faculty member of
'DCT and had a soit spot for UDCT snidents. For the
first three months, whea there was no fellowship, 1 had «|
plead with my father for support and he sent me RS100 a
‘month for expenses, | completed my PhD in a record time
oof three and a half years ond Prof Venkstaraman asked
‘me to stay on for post-doctoral work. After a year
‘wanted to leaye NCI for further studies, He insisted that 1
tack. [told him that he should atleast give mea
During my high school, I was sent
to live with my aunt who was very
poor, My father used to send Rs40
every month for my upkeep and they
managed the house with chat money. We
used to have just one meal and leftovers in
the evening, It made me realise, for the first
time, that if I did not have proper
education, Thave had ity
regular position. | became a ‘Scientist BY at NCL in 1965.
Until then, everyone was appointed to this post only on
returning from abroad after higher studies. Has already
married and had a child, A permanent government job
seemed like a Gd-ziven gift. For the neve 10 years, [was
focused on chemistry of natural prexlucts and isolated 100ombay. H.
YK Hamied, then
R&D at Ciph
bulk d
took
He was
t he w. A few days
ter, he came to NCL and paid a on
fee of Rs30,000 to bus
amazed yy
new compounds from plants and insects, which led to 70
pablications in top international journals,
ML: During 1965-1975, you also worked closely with
industry, shifing from your desire o do only fundamencal
research,
the process, We
AVR: | had the noxion that fundamental research was the
pure ching and industrial research was mediocte. But NCL
‘was changing at that time, Director Dr BD Tilsk insisted
fundamental cesearch had no relevance and the
ganic chemisery di
‘nalustry. My first brush with industrial research was the
cease of Poona Synthetics in 1970, The owner, Maharaj
1h, was the son-in-law of LK Jha (then Reserve Bank
Governor) Jha had requested Venkactraman t0 help the
sion had to find ways to serve
‘company solve a problem, But Venkataraman didn't know
anything about it so he asked me to help, The company
suecharine, and in the process i threw away a by-product
called PTS-amide. Saccharine prices went down and
Poona Synthetics was making heavy losses. [elt that the
ing OTS-amide, a key intermediate for
only way to revive the company was «9 add value co PTS:
amide by converting i to an intermediate called
turethan
possible buyer, But Singh felt that Hlocchst would never
for an anti-diabetic drug. Hoechst India was a
accept a local product. He was right.
ML: That was very surprising. Arrogance of MNCs?
av
ight. Hochst simply threw our the
gers of
Poona Synthetics. [bough a cicket to Bombay om my evn
and went fo Hochst. I didn't even have a business card
and wrote “from NCL’ an a piece of paper. The Hoechst
manager was also a former scadene of Venkataenina
id
called me in, He knew my name and agreed to give me
rial. He gave us an oder for Rs two lakh
immediately. But the company had no money to execute
it, So, l approached Stare Bank of India which asked me
for a technical guarantee. The manager said: “I will give
money only-on your werd". I took an NCL lettechesd,
wrote that the product w
ull work and signed it Lates, 1
to know that we are not supposed to do such things.
Tused to do some daring things bur only with good
ML: You were involved in supervising the production too,
AVR: [had co design the plant needed to produce
urethane and f was also spending Saturdays and Sundays
10k avway
supervisin
from Pune, Within one year, the company’ w:
rel In fact, Hound
g the produce batches in the factory
28 out of
ther application for PTS-anide
Aluoresweat pigments which were being imported.
ML: Alter that, you got involved with the drag industry
AVR: Around 1972, | was ke
synthetic drugs. Indian patent lays had be
allow Incian versions of foreign drugs andl pesticides. 1
selected the product diazepam but Regional Research
Laboratory (RRL), Hyderabad, was already doing it for
Ranbaxy. cold Dr Tilak that my approach would be
different and it would work out much cheaper, But we
had problems getting the raw materials, which were
imported, In carly 1972, Lyyent to meet a trader in
Bombay, He took me to Dr YK Hamied, then the director
‘of R&D at Cipla, He was trying to set up a bulk deug
He en
ed about ony dmy
Lexpl
cular product. He wante
to buy the know-how. A few days later, he came to NCL
and paid a one-time fee of Rs30,00 10 buy the process
approach co synthesising a pa
‘We were amazed. Later, we completed the synthesis of
diazepam which was given to Centaur Chemical
ML: What was your next career move?
AVR
the best organic labs. In 1975, I landed up at Harvard
worlcing. with EJ Corey fa Nobel Laitreate). Somebody
had iniially recom
fele che ned to spend one o¢ two years at one of
nded my name to Har GobindKhorana, sho was ot MIT, But Khorana wes working
more on biological chemistry eather than pure organic.
So Lopted for Harvard, After two years, | was very
Ieeen to come back because I was well established here
and wanted t0 continue my fundamental and industrial
research,
(ML: Whar did you do alter you nesuened from Harvard
in 1977?
AVR: When Tretured, I was very ambitious and wanted
to work on tough molecules, especially relating to cancer
De Tilak cold me: “Don't think you alone have come from
Harvard with an ambition. 110 have worked with
Dr Woodward at Harvard, Forgot all your ambitions and
sgoals and go back and work on natural products" But L
‘was adamant. He said: “In that case, you should get
outside funds”. Then, J met Dr Hamied. He knew | had
eally good potential, He olfered me a job, He said he
‘would build an R&D lab in Bangalore, He gave a blank
cheque to siga for my salary. Isaid: "No, I did not go t0
Harvacd for nothing; Eyeanted to be in research”. He said.
“1 will give you 10 research fellows to work with you"
ssid: “Once ane enters the industry, research becomes
secondary: For me, research is a primary commitment".
He suggested that | become a consultant I have been a
consultant ro every major pharnia company ~- Ranbaxy,
Gopla, Lupin
Dr Hamied was a regular He used 10 sponsar all kinds of
projects, so money was never a problem later.
ML: Around that ime, you made a major breakthrough
AVR: While L was looking for outside sourees of maney,
somebody told me very casually that the Maharashtra
Government has a swall grant ia what they called a
Science & Technology Gell and that they may provide
funds for one of my projects. The head of the Cell was
‘one Dr Malshe. Unknown to me at that timey he was
suffering from cancer and was reading a Jot on anti-cancer
research and medicine. He wanted to work on anti-cancer
medication and hed probably read about my work on
vinblastine and vincristine at the Corey group far
Harvard\. in che 1960s, Fl Lilly came to India and did
research on some Indian plants haced on the ayurvedic
system as part of the collaboration with NCL. for plant
extraction,
‘They had picked up this plant hich
is traditionally known to have medicinal properties. The
plane grows anywhere. Ie doesn't need watering and
strangely no animal tonches the plan, Fvon plane virus
doesn’ affect it. The reason, a8 we now know, is thac it
contains powerful alkaloids, which gjve out a pungent
smell. Do you knew thar women do not offer this flower
at some or time oF the other Bat
he Vinca rosea
1» God? Nobody knows why, but nebody packs this
ower, although it grows in the wild, The Malayalis make
aa decoction by boiling dried leaves in water and drink i
They believe it cures diabetes, On that basis, they were
looking for an anci-diabetic medicine, bur it was not
responding in animal tests.
ML: How was it identified as a cure for cancer?
AVR: Vinea rosea affected the bone marrow and the white
blood corpuscles reduced, That indicated that an anti
In. 1975, | went to Harvard to work
66 with EJ Corey (a Nobel Laureate).
Somebody had fiest recommended
my name to Har Gobind Khorana, who
was at MIT, But Khorana was working
more on biological chemistry rather than
pare organic. So T opted for Harvard yy
‘cancer deug was a possiility. So vinblastine and
vincristine, che rwo dimeric alkaloids widely used as ane
‘cance: agents were isolated and even today are the only
means of cure for leakaemia among children,
India was the only source of dried vinea leaves.
“Tradecs were procuring it from eribals in Mahareshtra
and exporting them to Fit Lilly, USA. But people became
greedy and started adulterating the leaves. When Bi Lilly
realised this, ie started cultivating the plant in che US
sand Afri,
In response, the Minisiry of Social Welare began co buy
eaves from the tribals to support them. When exports
dried up, huge stocks had piled up. They then approached
the Science & ‘Technology Cell to see if anything could be
lone with the leaves, That is how Dr Malshe wanted to
‘work with this plant. He wanted Pune or Boubay
University to isolate vinblastine and vincristine, but
neither of rhem came forwardWhen I met him, [began co talk about the plant and gaye
him more and mote details, He soon cealised that I knew
more about ie than he did. He asked me “how do you
know so nach about this plane”? I cold him I was
working on anticancer drugs, told him about wanting
to isolate vinblastine and vincristine, He asked me how:
mich money L would need. [said Rs ewo lakh. He
sanctioned it in 24 hours, Since NCL had cokl me there
‘was ne money for fundamental research, I went to the
I got drams, boug! with my
own money and welded it to the
dcum. F packed 30kg of leaves in
‘ht solvent and that is how
the drum; [be
chnology of the anti-cancer drug was
process
Osmania Universiey o look for research students. I started
work in 1978 to process 10 to 20
to pet a 0.00) extract of vinblastine. I gor druns, bought
‘of Vinea rosea leaves
‘cap with my owen money and welded ie to the drum. T
packed kg of leaves in the druny; I bought solvent snd
that is how the entire technology was developed, usin. a
very simple process without chromatography:
-ML: This is really a fascinating story
AVR: Yes. [informed Dr Malshe that we were able to get
vinblastine, He was very excited andl asked me abou my
‘other basic project for anthracyclines. asked him if he
‘would be willing to give money for that. His mandate was
to fand stat
niversties not central inefitutes, but he
realised the importance of what we were doing. He said,
“De Rama Rao, if you make vinblastine a success, then
inoney is not a problem”, He later agreed to give ws
another Rs three lakh, His entire budget was Rs eight lakh
and he had given more than half of ie to us.
1 commercialised the vinblastine project and successfully
completed the anthracycline programme
‘ML: Why dida’t anybody else think about this procedure,
1 simple solvent extracsion method?
AVR: There are 95 alkuloids in Vinca rosea of which you
have to pick one, Sciencists read the literature and make
things complicated. They carry on with what was done
before, Maybe today I will not be able to do what I dil
before, Those days, I didn’t have the right facilites,
Pushed to a corner, you are determined to find a way out.
ven on anthsacyeline, when I published papers, all the
MING read my papers, because the methods were so
Simple, And Igor ivited by all the pharma companies to
give lectures, All thote projects were relevant to them.
Tram one chemist who has probably lectured at all the
pharma companies and made more money from my
lectures than coosultancy. Fused to pay more income tax
than my salary.
‘ML: Vinblastin was an astounding breakthrough that
combined both fundamental and industrial research and
surely made waves at thar ime?
AVR Ina coincidence, the very morving I gave the sample
to Dr Malshe, he had me: Chief Minister AR Antulay
who was under fite from the MLAs wanting the Science
& Technology cell to be wound up. Anmulay was supposed
to reply in the Assembly, He asked Dr Malshe “Will sou
get any money from this esearch”? He said, “We will get
royalty, but tiore chan that, it isa prodacs thar will pat
India on the world map”.
Now; [had not discovered the deug. Whar did was 1
iscover a new cechnology to lower the price of making
the key intermediate. But Ancalay, being a politician, did
rot understand the difference ancl went ahead and
announced that an Indian scientist had discovered an anti
cancer drug, It was reported on the front pages of all the
newspapers the next day; but the text we had given him
ML: What abour the next steps ~ establishing the efficacy
and actual manufycturing of the drug?
AVR: Our process of isolating vinblastine and vincristine
1i Lilly was doing, But who was
ing to exploit it in India? Hindustan Antibioties was
Supposed to make the praducr. Ie insisted on using vials
to demonstrate the efficacy of
the product, That is where Dr Hamied helped. He pur me
in touch with Tata Cancer Hospital. There wa
Dr Shetty who was the chemotherapy head. L spent my
‘own money visiting the Hospital, Hindusan Anubionies
The authorities wancedbad a machine which was unused. I cleaned it up and
used it to make vials for rests. We used the drug. on the,
Tata Hospital pa
and Dr Shetty concluded that the resis were identical to
the Bl Lilly product. Bur HAL cefused to make chem.
Tent to Dr Hamied and asked him ithe would
manufacture the drug, Hie said, "No. Rama Rao, you are a
‘20d scientist, but you have to learn business from me’,
ats, along with the El Lilly products
Twas surprised. I thought I had done something fantastic
He asked me what is the val sule of de drug in India?
Ih was Rs25 lakh, He said, "My investment would be
Re two erore plas two years of interest which would then
have amounted to Re40 lakh”. [eanade no sense and
Thad no teal answer for this
ML: Was there an expart possibility?
AVR: Those days, nobody thought about the world
market. Ciplr’s exports were only Rs1.5 crore, $o | used
to sit in the library, late into the night and wonder what is
going wrong for this kind of inn
discovered that the parent for the El Lily product was.
due to expiee in 1985, I called Dr Hamied the next
mo-ning and said, “Ieisa world market
jon. Then, I suddenly
the patent is
going to expire in 1985 and we are already in L982
‘We need two years to start production aud you need
regulatory permissions”. He said, *My God, Rams Rao,
T didn’t realise his”. Cipla’: Bangalore facility was
ceeated. That was the beginning of exports by the Indian
drug industey. Th
Thecame well-known. Cipla signed the agreement for
technology in 1983 and supplied the first 500 vials to
1983. Irsold
‘each vial of vineristine sulphate at Rs25 comparcd to the
imported price of Rs80,
‘Through the entite process I learnt not only technology
and formulation but dealing with che doctors, linial
trials, dealing with FDA rules, good manufacturing
practices (GMP) and exports. That's why my own venture
Avra Laboratories has the Vinea rosea (the Periwinkle
flower) as its logo. The whole thing opened up my mind,
Even today, no scientist knows all these aspeccs from
fundamental research ro commercialisation, You need
‘extreme commitment 10 get solutions. Today, there
specialised people in industry to take care of different
phases of the process; bur at shat rime, there was no one.
MIL: You worked on other projects with Cipla and Lupin.
‘What was the next big piece of your work?
AVR: Another area where | think I made some
contribution co the coantry is in HIV/AIDS, Thave a
knack for identifying the right products ~ it is a God!
siven gift through mundane sourcss. There is another
in asience, everybody becomes expert in one
fs how Cipla also moves very fast and
three major cancer hospitals in December
In science, everybody be S
Ger in one chosen ficld: they
rarely change teack and do
something different. But every five years
I changed my area of work - from anti-
cancer to cyclical peptides 10 AIDS yy
‘chosen field; they rarely ch
different. Bor every five years, Lchanged my area of work,
MI: Tell us about each of these phases.
AVR: When I 16
cancer research, Then, in 1985, 1 decided I mast change
track and was looking for new areas. MG Ramachanelran
was the chief minister of Tamil Nadu and had undergone
kidney transplant, One morning, while reading che
newspaper, I noticed that the opposition parties were
asking who had paid for it ~ the party or the state
government. He aceded to take Cyclosporine A, which is
nge track and do something
wned from Harvard, I sas into anti
2 rug given to organ transplant patients and has to be
taken lifelong, The cost was RSS0)000 per person per
year I wondered why does this drug cost so mush and
‘why can’t it be mage here,
Lrushed to the library and started looking up
Cyclosporine A. | found ie was an immunosuppressant,
Thad never worked on this. SoH went ro the laboratory
and wrote on the board - immunosuppressant, This i the
project we are going to work on. My researchers were
very celuctant because they knew nothing about it, I said,
wwe will read and learn. To work in this area, we had to do
asymmetric synthesis. T ne forthe frst time in
India. Then there isa compound which i 100 times more
powerful than Cyclosporine, which is given today to heart
transplant patients, We did the total symthesis forthe frst
time outside the US, We worked on this tll 1990-91
= was dFrom 1980 t0 1995 was the period when I worked on my
‘own and the way T wanted 10. Since I had made a name in
research, money Was pouring in from industry and
Lutlised it for fandamemal research,
Tused to have a large number of student groups. I had
supervised 109 PhDs over LY years. 1 used to tell them to
s20 and sit inthe library and ge
ime some new ideas. The
ideas should he for something that is tough, relevant to
society and get us name and fame. These were the three
ctieria. One day, { was looking at vancomycin which is
used when all antibiotics fail Ie is very complex
ipolecule, I is most fascinating structure-wise and activiy:
wise. [knew that if we could do something. with it, we
will be noriced. We worked on it from 1992.95, Guess
who was our competitor? A Harvard professor He had
46 molecule. E knew that if we could
do with it, we will be
noticed. We worked on it from 1992-95.
Guess who was our competitor? A Harvard
professor. He had been working on it for
10 years, We beat him to it yy
been working on ic for 10 years, Everyone sail he ie
‘working on it for a long time and coulen’s
so why did we want to get into it
ML: "the product was already there. You wanted to make
a new analogue for better results?
AVR: Yes. JC like, why did you elim the Everest? It is
for the excitement, Here, there was not only excitement
bout the work has relevance. Industry takes your work,
makes a variety of analogues. Even for vincomycin, there
et anywhere,
are hundeeds of new analogues. It was 4 fermentation,
product made by Fh Lilly. We were the frst ro synthesise
it. We aimed to extend its knowledge and efficacy. We
made it in rwo halves, Then a problem arase, How to,
hook the two halves together. That was the problem the
Harvard professor was strugging with. [go for morning
walks and, at that time, I think abour all my problems
One day, while walking, it suddenly oceutred to me that
this may not be the way Nature has built it, So [came
back and said, fer us reverse the sequ
first to complete the synthesis,
ML: You have also worked on ALDS medicine.
AVR: In 1988-89, I read in a newspaper that a young man
had come from the Gulf and died of AIDS because of
blood transfusion, There was only one drug available for
AIDS which had responded in animal testing. The USEDA
had approved it withour any clinical trials, bypassing all
the cules, [twas very expensive. [deeply felt cat every
Indian must have access tn it. We came out with a new
method of making the drag, Ie
ise it in 1991, Usa,
annount for the Indian market, otherwise our people
will be deprived”. He was reluctant but agreed, At that
time, Burroughs Wellcome had introduced the drug in
India and wanted co block ur product. The Indian FDA
wanted the drug tested on eight HIV patients, bu there
‘weren't that maay patienis in Indian hospitals. This meant
that it was impossible 1o meet the requirement. One year
passed and ic was no cleared, In 1992, D: Hamied said,
“Ihave done what you wanted; it i not in my hands,
nee; we were the
rested Dr Hamied to
commer Pleave make atleast a
because this
anf wot moving the file”
I then picked up the phore and called the officer. I knew
the person because he was on various government
‘committees that I headed. For the frst time in my life,
I threatened someone. I said, “If you don’t clear the drug.
within 24 hours, Iwill take up the issue with the prime
minister, who is the president of CSIR. It was cleared in
24 hours. Cipla manufactured about L0 millon tablets of
Zidovudine, but there were no patients. Dr
he was willing 19 distribute it through the ICMR (Indian
Council for Medical Research), but the director of ICMR.
seid that was not his mandate. By 1995, however. AIDS
had beceme widespread and the market for the deug jst
ammied said
took off
‘ML: Cipla has made such a global name by offering the