• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

To invest £ 32.1 million in Genemedix over the next five years

Advertisement

Mumbai Feb. 7 Reliance Life Sciences (RLS) expects its recent acquisition of UK-based biotech company Genemedix Plc to strengthen its pipeline of biosimilar products. And the first product to get off the blocks from this association will be the biosimilar version of Erythropoietin (EPO), used in kidney-related applications and in patients undergoing chemotherapy.

The clinical trials on EPO have started in Europe and is expected to be completed by the end of 2008. The product would be launched in Europe in 2009, said Mr K.V. Subramaniam, President of RLS.

Shareholder Approval

RLS had said that it would invest £ 32.1 million in Genemedix over the next five years. The deal received shareholder approval from Genemedix in early-January. RLS acquired 74 per cent for £ 14.6 million, by subscribing to 1,168 million shares of Genemedix at 1.25 pence per share. The deal includes a five-year warrant option for RLS for a further 1,404 million shares, locked in at the same share-price of 1.25 pence per share. Part of the Reliance group, RLS is founded by Mr Mukesh Ambani.

Besides giving RLS a foothold into the European biopharmaceutical market, the deal brings into its fold Genemedix's manufacturing plant in Ireland. Genemedix also has complementary products like GCSF (Granulocyte Colony Stimulating Factor), used to stimulate white blood cell production. It is an adjunct treatment with chemotherapy for cancer patients.

Greater Flexibility

Since RLS also has a biosimilar GCSF product under development, he said that the products would be evaluated on its efficacy, among other indicators. EPO and GCSF are estimated to have $10 billion and $3 billion markets respectively.

For Genemedix, which was in distress when the acquisition was effected, the deal would help clear debts and support product development, he said.

Genemedix would transfer its listing to the Alternate Investment Market of the London Stock Exchange, he said, to give it greater flexibility in aligning its capital structure and funding plans to support the diverse product development programme.

More Stories on : Mergers & Acquisitions | Overseas Investments | Pharmaceuticals | Bio-tech & Genetics | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GVFL plans more investments in IT, biotech

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line