The Hindu Business Line : Kemwell seeks funds for biologics unit in Bangalore

Bangalore-based pharmaceutical company Kemwell said it was in talks with three private equity players who focus on the sector for raising funds for a new biologics facility in Bangalore. The company, which recently acquired Pzifer’s unit in Sweden and produces raw material for the company, is also scouting for acquisitions in the Baltic Sea Region for increasing its presence in the area. The company, which has clocked revenues of over $50 million, plans to invest $65 million in funds for the new facility. However, the family-owned company did not disclose the details of its intended engagement with PE funds.

Apart from the biologics facility, the company is also in the process of establishing another oral solids facility in Bangalore for which it had recently made an investment of $12 million. The facility, which has the capacity to make 5 billion tablets, is currently under validation.

Drug retesting

After its experience in Sweden, the company is also on the lookout for other acquisitions in the region from where it can service customers in the field of injectibles, sterile manufacturing and retesting of drugs.

“We intend to get into the business of retesting of drugs for the European market as regulation here requires for every drug to be retested before it is approved for the European market. We see a good opportunity in this,” said Mr Anurag Bagaria, Vice-President (Business Development) Kemwell. “For acquisitions we will look at other regions in the Western world as well,” he added.

Mr Bagaria said the main reason for acquiring Pfizer’s unit in Sweden was to gain increased credibility for Kemwell’s manufacturing capabilities, be closer to customers and attract more business. The Sweden facility is located at the Uppsala biotech cluster and mainly produced raw material for arthritis drug Salazopyrine for Pfizer.

Kemwell provides contract manufacturing and development services for pharmaceutical products in India and Sweden. It has four manufacturing facilities in Bangalore and one in Sweden. It has been one of the largest formulations contract manufacturers in India, serving both MNC and Indian pharmaceutical companies for over 20 years.

Sweden, which has the fourth-largest biotechnology industry in the world, offers investors in the life sciences sector a wide range of opportunities including in-licensing, collaboration and direct investment. Swedish companies are known for their prowess in the entire pharma value chain with special strengths in the area of drug discovery and development, medical engineering and biopharmaceutical production. The country's life sciences industry comprises 800 companies, with over 40,000 employees. This year in Sweden's biotech pipeline, there are an estimated 169 projects under development at 51 companies.

With strong biotech competencies united into a super cluster through the ScanBalt BioRegion initiative, the region has over 1,000 biotech and life science companies with competitive brands like AstraZeneca, Leo Pharma, Lundbeck and Novo Nordisk. BSR has over 60 universities working in life sciences research, with growing opportunities in clinical trials and medical methodology.

More Stories on : Venture Capital | Pharmaceuticals

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

Stories in this Section
Bajaj launches XCD 125; priced at Rs 41,000

Tata Tea offer price for Mt Everest in contention

The changing face of Indian work culture

How fashions change in politics

Kemwell seeks funds for biologics unit in Bangalore

Kerala Govt addresses concerns on handover of Trayons land