Mukesh Ambani-owned Reliance Life Sciences (RLS) is betting big on contract research, with plans for acquiring a contract research organisation (CRO) in Europe. The company, which is in talks with two prominent CROs in western Europe, is expected to close a deal within two months. The deal could cost about $50 million.
Apart from the CRO space, RLS is weighing the option of buying out a biotech drug manufacturing facility in the US. The buyout would boost RLS? clinical trial activities in Europe, especially trials of its own biogeneric drugs. Aiming to enter the global biogenerics market, the company is conducting clinical trials of erythropoietin and granulocyte colony stimulating factor in Poland. The products could be launched next year in Europe.
Currently, RLS has a subsidiary in the contract research sector, Reliance Clinical Research Services with global headquarters in Pennsylvania and facilities in Chicago, Bangalore and Navi Mumbai.
KV Subramaniam, president & CEO, Reliance Life Sciences, told FE , ?The CRO buyout will be beneficial for us in two ways. It could be used for our own biogenerics development as well as conducting trials for other firms in the Europe. The final stages of negotiations are on and we wanted to close the deal as early as possible.?
Meanwhile, RLS is considering various options as part of its entry into the US generics market, including acquiring an existing manufacturing facility for manufacturing biogenerics for the US. Earlier, RLS had acquired 74% in the UK-based biotech firm, GeneMedix. ?We are considering various options for entering the US biogenerics market. But there are no immediate plans as uncertainty remains in the US regulations for biogenerics manufacturing,? he said.
Last year, RLS had partnered with the US-based global investment management firm MPM Capital LP, by investing in its BioVentures IV fund.