Ranbaxy to acquire Bangalore based Biovel Life Sciences

India's top drug maker by value is eyeing Bangalore based biopharmaceutical player Biovel Life sciences for a possible acquisition. Negotiation talks are on, the deal is expected to be at a value close to Rs 50 crore.

The deal if happens will comprise Ranbaxy acquiring a percentage stake in Biovel and will give the Gurgaon-based company Biovel's research and development capabilities, R&D and manufacturing facility spread across one lakh sq ft in Bangalore. It will allow Ranbaxy to leverage its expanded base in the rapidly growing vaccine and biopharmaceutical market and also unleash new opportunities in the CRAMS space.


Within four years of its inception, Biovel, has expanded its research facility and has set up a new production and an R&D facility in Bangalore with an investment of close to Rs 50 crore. Biovel is setting up facilities for research work in drug delivery and monoclonal antibodies. Going by its infrastructure compliance and personnel capability, the company is ready for CRAMS in the regulated markets.

The main focus of Biovel's R&D is development of vaccines, biopharmaceuticals and drug delivery. Biovel has expertise in basic research and in manufacture of biogenerics, besides fill-finish of vial/syringes. The company was also eying a small-sized European pharma plant for a possible acquisition.

The company in 2008 entered into an in-licensing agreement with Dow Pharmaceuticals,USA, and obtained the Pfenex Expression Technology with global marketing rights for producing the human growth hormone (HGH). In order to be associated with the global pharma majors, Biovel also opened an office at Atlanta and had bagged the global rights for manufacture and marketing of endocrinology products from a US major.

It was also planning to introduce a range of vaccines and therapeutic proteins in the Indian market. Biovel has in house expertise in producing and purifying the polysaccharide vaccines. Hence, it took up the project of producing qadra valent meningitis vaccine and as part of it. The company obtained all strains A, C, W and Y and it is producing all the vaccines and characterizing. Biovel has already produced and finished the clinical trails of vi-polysaccharide vaccine and is working on conjugation of the polysaccharide vaccine with carrier proteins like Tetanus Toxoid (TT).

Additionally, it is developing a department which has the major focus on the delivery systems either by inventing or by using the expired patents.

Ranbaxy was acquired by one of Japan's top drug makers Daiichi Sankyo for $4.2 billion after which the founder family exited the company.