October 3, 2002
Source: Express Pharma Pulse
Avesthagen in talks with int’l institutes for novel drugs

Vijaya K - Bangalore
Express Pharma Pulse
Avesthagen, a Bangalore based fully integrated biotechnology and bioinformatics company set up primarily to promote research and development services worldwide, is in talks with Imperial College, London and a French company Biomeriex to jointly explore novel potential drugs and R&D services in its projects based on medicinal plant system.

The company plans to conduct studies on population genetics which could be a key driver in the process of drug discovery, identifying drug target and diagnostics.

"We are planning to tie up with institutions such as Imperial College on certain diseases like cardiovascular etc where we would screen the patients for particular markers,’’ said Dr Villoo Morawala Patell, the founder and CEO of the company, ‘‘Our focus is on predictive medicine rather than prescriptive."

Avesthagen, which has today grown into a mid-sized biotech company, is expected to raise its second round of funding to the tune of upto $10m from two international investors. ‘‘We have reached pre product stage and Avesthagen has acquired many IPRs now,’’ Dr Patell said.

Major chunk of the funds is expected to go into the company’s medicinal plant drug discovery system. In addition to ongoing projects, the company also plans discovery of novel molecules and novel proteins from medicinal plants as well as set up systems for standardising medicinal plants extracts.

Avesthagen provides R&D services for medicinal plant drug system apart from developing technology, Dr Patell said.

The company’s projects under medicinal plant drugs system are in much early stage of discovery and the company plans to use proteomes for producing biotherapeutics of these medicinal plants.

The synergy between Avesthagen’s expertise in biology and the marketing strengths of the Healthcare and Life Sciences division of Wipro is centred upon knowledge management from the early discovery stages to clinical trials and plan to provide population genetics services in various disease areas like lupus, arthritis and cardiovascular diseases.

The company’s convergence sector comprising of food, pharma and population genetics is focussed on medicine for diabetes and skin care.

"We plan to go in for IPO within a span of two years. This is essential for Indian biotech companies because local VCs are not tuned for funding and make India a truly R&D based hub by attracting transnational VC investments," Dr Villoo feels.

Avesthagen was spun off in April 1998 with funding from the Rockefeller foundation. In April 1999 it signed an MOU with University of Agricultural Sciences initiating some projects.

In the first round, Avesthagen raised $2million as venture funding from ICICI ventures, Global Trust Bank and TATA Industries Ltd.