(News) After Cipla, Piramal gets into biotech
After Cipla, Piramal gets into biotech
After Cipla last week acquired stake into two biotech companies, it’s now Piramal Healthcare’s turn to foray into the biotechnology sector.
The Mumbai-based company, which sold its domestic formulations business to
Abbott last month, has acquired a Canada-based biotech company, BioSyntech, for
C$3.9 million (Rs 17.65 crore).
Swati Piramal, director, strategic alliances and communications, said this
acquisition covers the Quebec-based company’s intellectual property, land and
other assets.
BioSyntech’s technology platform consists of hydro gels, which can be injected
or applied to a specified area and can repair damaged cartilage, bone. “It is
mainly for arthritis and provides the benefit of avoiding surgery,” Piramal
said.
In 2005, Piramal had invested Rs 22 crore in BioSyntech by subscribing to common
shares, as according to Swati Piramal, the technologies were believed to be
promising.
However, BioSyntech ran out of money during the phase III trials (trials for the
medicine on 1,000-3,000 patients) and went into bankruptcy and sought protection
under the Bankruptcy and
Insolvency Act in May this year, following which offers were sought for sale of
the company’s assets, which Piramal bid successfully.
“We would require a further Rs 35 crore for completion of the trials and
bringing the product to the market. The production, manufacturing, trials would
happen in India at a cheaper rate,” said Piramal.
Read more..
Courtesy: dnaindia.com
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