August 27, 2003
Source: EXPRESS NEWS SERVICE
First biotech initiative: MoU singed with Avesthagen

Thiruvananthapuram,
Aug 26: The State Government has taken the first concrete initiative in reaping the benefits of biotechnology with the signing of a memorandum of understanding with the Bangalore- based biotech firm Avestha Gengraine Technologies Private Limited (Avesthagen).

The MoU signed here today by Industries Principal Secretary John Mathai and Avestha Gengraine Technologies CEO and founder Villoo Morawala Patell in the presence of Industry Minister P. K. Kunhalikutty, signals the launch of a joint initiative to position the State for leadership in the phytopharmaceuticals-biotechnology sector.

The State Government with the biotech major will set up a special purpose vehicle (SPV) with an initial corpus of Rs 10 crore to leverage the State's rich biodiversity and its unique expertise in ayurveda and other traditional healing systems.

The SPY, which would be constituted in three months, would offer world class cost-effective means to interested institutions/individuals in the State and elsewhere to get their traditional medicine products evaluated and validated for potential marketing in the global marketplace. Avesthagen would support the SPV to establish state-of-the-art biotechnology infrastructure and expertise in the State for phytopharmaceutical development. It would also take the lead for securing funding for the SPV.

Speaking on the occasion, Industry Minister P. K. Kunhalikutty said that the State had in-depth knowledge and practice in Ayurveda and tribal medicine.

"Through such partners- hips with the private sector, we expect to take our traditional medicine to the world, packaged and validated to global market regulations and expectations," he said. The Minister also said that the Industry Department would promote industrial initiatives and investment in the State that sustainably, scientifically, efficiently and profitably utilized the biodiversity resources of the State.

Dr. Villoo Paten said that the SPV would enter into suitable arrangements with Avesthagen Inc., USA, to find suitable partners for the commercialisation of its products worldwide. "Thus, the SPV intends to fill the strategic gaps in the value chain leading to marketing phytopharmaceuticals in the global marketplace, "she said.