Shreya, SciGen set up plant for recombinant products

Ananth Iyer - Mumbai

Shreya Biotech, a 77-23 joint venture between Shreya Life Sciences Pvt Ltd and Singapore-based SciGen set up last year, is putting up a manufacturing facility for recombinant products at the upcoming biotech park at Hingewadi, near Pune.

The project cost is estimated between Rs 30-35 crore and the facility is expected to commence production by mid 2004, Dr Rajiv Datar, head of Shreya’s biotech initiative, informed Express Pharma Pulse.

The project is split into two phases. In the first phase, the joint venture company will source technologies for four recombinant products from SciGen, says Dr Datar. These possibly include human insulin, hepatitis B vaccine, a growth hormone and interferon. The joint venture, in its second phase, hopes to attract 2-3 new products every year.

SciGen, which claims to be involved in the research, development and marketing of genetically engineered healthcare products, has a kitty of six products. These include recombinant human growth hormone, interferon, human insulin, and vaccine for hepatitis B, DaPT and a combination vaccine for hepatitis B and DaPT.

The company has a string of licensing arrangements for the six products. For instance, the human growth hormone, the global market for which is estimated at USD 1.6 billion in 2000 and USD 400 million in Asia-Pacific, is licensed from BTG to market and distribute in 11 Asia-Pacific nations, including India. The licensing arrangement with BTG also extends to human insulin and hepatitis B vaccine. The human insulin market is estimated at USD 2.7 billion with an annual growth forecast of 15 per cent over the medium term. For hepatitis B, the global market is estimated at USD 800 million and USD 350 million in South East Asia.

For interferon, SciGen has signed an agreement with US-based Peprotech for joint development. In return, SciGen has bagged exclusive global right to manufacture, market, distribute and sell the product for a period of 99 years starting 1993.

The DaPT vaccine has been sub-licensed from the Kaketsuken Institute of Japan. It is a second-generation vaccine containing the patented acellular pertusis vaccine.

Shreya, which recently acquired the pharma business of Indore-based Plethico, now wants to acquire companies that have chemistry R&D strengths, some amount of international exposure and a hold on the domestic market.

The company is talking to 3-4 Indian companies for strategic acquisitions, Shreya CEO Mandrekar told Express Pharma Pulse. ‘‘It would take another 8-10 months to integrate Plethico. Only after that can we look at the next acquisition.’’ But industry sources say that RPG Life Sciences, which is reportedly up for grabs, is one of the companies Shreya is talking to.

Industry sources also say that Shreya is planning to put up a facility for erythropoetin. But Dr Datar clarified that there are no such plans.

Shreya is planning a mix of organic and inorganic growth strategies in the near term. The company plans to achieve Rs 350 crore sales in the domestic market by March 2004. It is now considering acquisition of pharma companies with some R&D chemistry strength, international exposure and with a bit of strength in the domestic market.