Leading Indian life sciences company Avestha Gengraine Technologies (Avesthagen) has tied up with Denmark's Centre for Clinical and Basic Research and Industrialisation Fund for Developing Countries (IFU) for osteoporosis research.

The collaboration on the five million euro research is being done through the joint venture Avesta Nordic Research Pvt. Ltd in which Avesthagen has invested 2.5 million euros.

"The alliance will cover diagnosis, treatment and prevention of osteoporosis and related bone disorders," Avesthagen said in a statement Thursday.

Centre for Clinical and Basic Research is a private research institute that primarily works with conditions and diseases that arise in association with the menopause, especially osteoporosis.

IFU is an investment fund owned by the Danish government and has a mandate to promote economic activities in developing countries like India by investing in commercial projects together with industry.

Commenting on the investment, Avesta Nordic chairman Helle Bechgaard said: "IFU had been keenly watching the rapid growth in the biotech sector globally, but more especially in India through our office in New Delhi over the past two years.

"We have made this strategic investment in Avesta Nordic because we believe in its platform and the huge potential of this sector."