January 17, 2002
Source: Business Line, Ed. Bangalore
Avesthagen seeks funding to expand R&D activities
   Plans foray into overseas markets

AVESTHA Gengraine Technologies, the biotech and bioinformatics company, is looking to mop up more funds to expand the scope of its research and development (R&D) activities and subsequently translate them into commercial ventures in the country and abroad.

Mr Koen Wentink, Chief Operating Officer, told Business Line that the company was seeking a second round of funding to bolster its activity in the field of seed and agricultural development, medicinal plants-based drug discovery and contract research.

The company has appointed Kotak Mahindra and KPMG as global advisors for the second round of funding aimed at raising $10 million and Mr Wentink expected to wrap up the issue in about four months. Avestha Gengraine is also looking at setting up business development offices abroad to scan the commercial opportunities in the segments where it operates. Opportunities in seed development, contract manufacturing for pharma majors and biotech were huge, he said, and the company was looking at foraying into the US, European and Australian markets. The first round of funding, concluded in June 2001, raised $1.8 million, he said. The current stakeholders in the company include the Tata group, ICICI Ventures' and Global Trust Bank.

Unwilling to give the holding pattern in the company, the COO said that it was possible that existing stakeholders would increase their participation. But given the total amount required, the biotech company was scouting among international venture capitalists and strategic investors, he said.

Though the company was founded in 1998, the commercial ramp-up happened in the last two years with the filing of about 40 patent applications, he said.

Recently, Avestha Gengraine also entered into a research-based alliance with AstraZeneca in the drug discovery program for tuberculosis. He said that the two organisations were in talks to expand the scope of this research to other areas too.

The biotech company also has a strategic tie-up with ICRISAT (International Crop Research Institute of the Semi Arid Tropics) to provide supportive work in the genomics. The project is aimed at developing improved crop varieties and will translate into IPR for both companies.