Avesta Biotherapeutics and Research Pvt. Ltd.

Avesthagen Limited and Meditab Specialities Ltd have embarked on a manufacturing Joint Venture for production of Biopharmaceuticals in India. The JV, Avesta Biotherapeutics and Research Pvt Ltd, based in Bangalore, will manufacture a new generation of targeted therapies that are already in development through the ongoing development programme that was announced last year. In addition, the venture will exploit opportunities in Biologicals Contract Manufacturing worldwide - a fast expanding growth segment in the pharmaceuticals arena.

The new manufacturing facility based on mammalian cell culture products will be USFDA compliant and phase one is expected to go on-stream by the third quarter of 2006. The second phase, which involves setup of a large manufacturing facility for mammalian and microbially derived molecules is expected to be complete in 2008.

The manufacturing facility is expected to initially focus on the manufacture of the biopharmaceuticals that are presently under development at Avesthagen through the Avesthagen-Cipla tieup for biopharmaceutials development partnership that was signed in May 2004.

The company is also in the process of evaluating option in the stem cell therapy area, with the first step being taken to setup stem cell banks. The respective companies view this as a long term opportunity and the entity is expected to be a major player in the field.

The synergistic win-win Avesthagen-Cipla umbrella tie-up is in line with similar deals seen in mature US markets. The technology development prowess of Avesthagen is complemented by Cipla's marketing strengths. This tie-up strengthens the growing impact of biopharmaceuticals on a market presently dominated by chemical entities.

The drug development partnership, which focuses on development of biopharmaceuticals in the area of autoimmune disorders and cancers, is expected to widen. The partnership is open-ended and the release of the first biotherapeutic is expected to be on the market in late 2006.

The Indian biopharmaceutical business, presently estimated at $200 million, is expected to grow to about $3.3 billion by 2007-08, dominated by recombinant proteins, vaccines and monoclonal antibodies. The Avestha-Cipla tie-up hopes to capitalise on this opportunity as a base, to catapult it into markets abroad.