News: Apollo Group formulates a biotech entry

(DNA 10/03/2007) Mumbai - The Indian biopharmaceuticals industry, which is readying itself to take on the world with bio-generic drugs, is all set to witness a fierce battle in the domestic sector. The new entrant into the biopharmaceuticals sector is the Apollo Hospitals Group, the largest hospital group in the Asia. It is learnt that the group, which is scouting for a R&D expert to head its planned biopharmaceuticals foray, will be setting up the biopharmaceuticals company by middle of this year. During 2005-06, the Indian biotech industry registered sales of Rs 6,521 crore -a 37.42% growth. Of this, the biopharma sector registered sales of Rs 4,708 crore - a 72% share of the total Indian biotech industry, according to the Association of Biotechnology Led Enterprises (ABLE). The Indian biotech industry has pinned its hopes on the possibility that the new biogeneric laws in the US and Europe will allow them to launch generic versions of off patented biotech drugs. It is learnt that in the US alone, biotech drugs worth $10 billion are going off patent by 2010. By then the Indian biotech industry is expected to be a $9 billion industry by 2010. Global biotech drug sales, which touched $60 billion in 2005, is expected to total $90 billion by 2009. Confirming the development, Prathap C Reddy, chairman, Apollo Hospitals Group, told DNA Money, "We are scouting for an research and development expert to head our proposed biotech company. We are in talks with few professors in Harvard University. Once we appoint the helmsman, we will finalise all other details." He hinted that the company would be set up at the Hyderabad biotech SEZ in Andhra Pradesh. He, however, refused to disclose the planned investments, saying, "We have enough financial strength already to fructify our plans thus we are not restricted on how much to spend for the biotech company. " It is learnt that the proposed company will manufacture generic versions of biotech drugs as well as do R&D for new drugs. Meanwhile on the group's global acquisitions, Prathap C Reddy said he hopes to complete the UK buyouts within a couple of months. Apollo is keen on acquiring either of the hospital group - Capio and Abbey - that have been put on the block. "Capio has the advantage of 21 hospitals under its brand name. However, we are yet to zero on any one. We hope the deal could be sized around £250 million," Reddy added. Presently, Apollo is learnt to be the sole bidder for Capio hospital. DNA Money had reported on Apollo's plans for hospital buyouts in the UK its November 3, 2006 edition. The UK healthcare market is worth £ 6 billion. The Apollo Hospitals Group runs 44 hospitals, 50 clinics and 380 pharmacies across the country. Last month the group had signed an MoU with StemCyte, a US-based umbilical cord blood stem cell transplantation company, for collaboration in the use of stem cell therapy in the treatment of blood disorders. An operational agreement with Yemen-based Hayel Saeed Anam Group (HSA), to provide super specialty healthcare was also signed by Apollo last month.