Date:01/11/2004 URL: http://www.thehindubusinessline.com/2004/11/01/stories/2004110101231400.htm

Back Avesthagen to make osteoporosis product with Danish partner

Our Bureau

Bangalore , Oct. 31

THE Bangalore-based biotech company Avestha Gengraine Technologies has announced that it would jointly develop a nutraceutical for osteoporosis treatment jointly with Danish research major CCBR.

Avesthagen, along with the Centre for Clinical & Basic Research and its commercial biotech arm Nordic Bioscience, will set up in India a 50:50 special purpose vehicle to develop the plant-based product over the next three years, according to Avesthagen Founder and CEO, Dr Villoo Morawala Patell and CCBR Founder and CEO, Dr Claus Christiansen.

This would be a product that would enter the food and pharmaceutical scene, Dr Patell told a news conference here.

The IFU's Director for Investment Management Department, Mr Morten Christiansen, was present.

The cost of the euro 7.5-million project would be equally split among the two partners and IFU-Denmark's Industrialisation Fund for Developing Countries.

The project would commence as soon as IFU completed its due diligence, probably by this year-end. The product would be developed and clinically tested in both India and Denmark, using the pre-clinical research expertise of Avesthagen and CCBR's experience related to osteoporosis.

Dr Christiansen said the centre was involved in several projects to develop a product targeted at osteoporosis and this was the first using traditional medicine. The product would be for the global market.

The company would also use its database of plant medicine, currently numbering 3,000 formulations. A dedicated team of 30-40 scientists would work in the project.

According to Dr Christiansen, the osteoporosis market exceeds $10 million globally. Avesthagen would also market in India an osteoporosis diagnostic kit developed by CCBR arm, Nordic Biosciences. It may keep the licence and look for a marketing tie-up for the kit, Dr Patell said.

Diabetes drug: Avesthagen is also developing an anti-diabetes product as part of its food-for-medicine pipeline portfolio. Meant for Type-2 diabetics, the nutraceutical is 18 months away. Avesthagen is doing animal tests and has the option of tying up with major domestic and international players for clinical research, production and marketing, Dr Patell said. The project is funded under the World Bank's SPREAD programme.