Biotech firm Actis Biologics is investing about $300 million for its proposed biotech city at Melacca, Malaysia. The company, which is planning to develop the city in 7 phases with one each year, has tied up with the state-owned Melacca Biotech Corporation in August for the RM 1.36 billion (Rs 1,578 crore) project.
Actis, which has set up a Malaysian entity, Actis Biologics Malaysia Sdn Bhd, is also in negotiations with a few companies for the construction of the proposed city over 300 acres. In return, a minority stake in Biotech city will be given to the company. Apart from the construction company, the Malaysian government will also be offered a minority stake in return for the 300 acres of land, being given to Actis free of cost. For funding the project, Actis has set up a VC company, Actis Bioventure, with an initial investment of $50 million.
According to Sanjeev Saxena, chairman, Actis will be setting up life science-related companies, Telesto Diagnostics, Kohinoor Biotech, Cogenesis and Aum Lifesciences, focusing on areas like cardiovascular diseases, anti-cancer and diabetes. ?Once the four companies start functioning, the profit will be shared for further expansions,? he said. However, he didn?t rule out the possibility of investment by PE players in the proposed work. Kohinoor Biotech will develop drugs for various cancers, while Aum Lifesciences will manufacture drugs using recombinant protein technology. The construction is expected to start by December this year.
The Malaysian government is offering enormous support to the investors and it is aiming at becoming a regional biotechnology hub to get a pie of the worthwhile global biotechnology market that is forecasting a revenue of $1 trillion by 2015.
Actis Biologics Pvt Ltd (ABPL), the Indian arm of the company, had announced a Rs 100-crore expansion plan in India. At present, the parent company and promoters hold 65% stake in ABPL, while 26% is kept with Mumbai-based Innovassynth Technologies and 6% stake is with individuals. For buying the remaining 3% stake, various corporate groups are in talks with ABPL.
