The Bangalore-based Biocon Ltd, in joint venture with Cuban pharmaceutical firm Cimab SA, will commission a facility in Bangalore to manufacture the latter's biotech products based on the monoclonal antibodies (Mab).
The facility, in which Biocon will invest Rs 125 crore (Rs 1.25 billion), is expected to begin commercial production of Mab products in 2006. Initially the Rs 372 crore (Rs 3.72 billion) Biocon will market Mab products only in the domestic market.
Kiran Mazumder-Shaw, chairman and managing director of Biocon, who was in Ahmedabad last week, said, "We have initiated the process of planning production facilities for the new entity called Biocon Biopharmaceuticals Pvt Ltd near our facility in Bangalore. The venture will produce and sell antibodies-based products which are used mainly for treating head and neck cancer. These products are developed by Cimab SA. The venture will allow Biocon to utilise Cimab's expertise in developing and manufacturing such products, which today are largely imported in India. Our agreement with Cimab also contemplates that through BBPL, we will collaborate with Cimab in research and development."
Biocon holds a majority stake of 51 percent in BBPL, while the rest is held by Cimab. Recently the Biocon board had given a preliminary approval to finance capital expenditure of up to Rs 85 crore (Rs 850 million) for the joint venture.
Though initially BBPL will produce drugs for head and neck cancer, later it will begin producing drugs for other cancer treatment, provided the ongoing research works in this direction becomes successful.
Kiran said, "Products from this joint venture will be marketed under the Biocon brand. After marketing the products in India for two-three years, we will target the markets in the US and Europe with Mab products, provided we get all the necessary approvals."
The plant is being set up at Bommasandra in greater Bangalore, around five km away from Biocon's facilities .