Ranbaxy to buy bio-tech firm Biovel Lifesciensce

Ranbaxy Laboratories on Tuesday said it will acquire Bangalore-based Biovel Lifesciences for an undisclosed amount.

"The proposed transaction will give Ranbaxy access to all of Biovels products, pipeline, intellectual property know-how and manufacturing facility," Ranbaxy said in a statement.

The products that are part of the transaction are Typhoid Vi antigen and Hib conjugate vaccines for which Ranbaxy also has the regulatory approvals in India. It would also give Ranbaxy an access to Biovels future product pipeline comprising a range of vaccines, biotherapeutics and other products, it added.

"This transaction with Biovel provides us an entry platform to manufacture vaccines as well as biotherapeutics," Ranbaxy CEO and Managing Director Atul Sobti said.

The vaccine and biotherapeutics business will be an important part of our growth strategy, Sobti said. "We are sure that Ranbaxy, with its global market reach, quality and manufacturing expertise, will be able to leverage this to its full potential, and create a business of scale," Biovel chairman Pratap Reddy said.

According to the industry experts, the proposed acquisition would give a strong product pipeline to Ranbaxy in the Rs 3,600 crore (Rs 36 billion) domestic vaccine market, which is growing at the rate of 10 per cent.

The global market for vaccines in around $21 billion and estimated to grow at a rate of 9 per cent per annum to reach $34 billion by 2014.

Bangalore-based Biovel, which started operations in 2007, is a biotechnology firm focused on research, manufacturing and marketing of biogenerics, bio-superiors and bio-pharmaceuticals.

Gurgaon-based Ranbaxy Laboratories is India's largest pharmaceutical company in which Japanese drug maker Daiichi Sankyo has over 63 per cent stake.