ABL Biotech to invest Rs 25cr in Chennai R&D centre

ABL Biotechnologies Ltd (ABL) has announced that it has lined up a Rs 25-crore budget to be spent on setting up a state-of-the-art research and development facility at Ticel Biopark in Chennai over the next one year.

The 10,000-sq ft R&D facility will focus on natural products, nutraceuticals, therapeutics, microbial research and drug discovery.

K O Isaac, CMD of ABL, said the company had already invested Rs 5 crore in the first phase of the facility and would invest the remaining amount in the next one year.

ABL is planning to enhance its equity base through infusion of funds from private investors, said Isaac, declining to further elaborate on this. "The company is growing at a rate of 80-100 per cent and we expect to double this in the next two years," Isaac said.

"ABL's R&D efforts are centred on the enormous potential of the Indian biosphere. They focus on the production of new tools to fight as well as prevent diseases," he added.

ABL also plans a drug delivery project in the next few months at an investment of around Rs 1.5 crore. Besides, a bioinformatics and structural biology division is also on the anvil. ABL has its manufacturing facility at Tiruchendur and is planning to set up a few more in the near future.

Stating that the company was spending about eight per cent of its revenue on R&D activities, Isaac said ABL would introduce 24 'sanctum' (supplements combining lifestyle and therapy) nutrition products like jams, squashes, beverages and chocolates in India by April 2008.

It exports these products to about nine countries in the Middle East, Europe and Asia.

In line with the latest trend of drug and pharmaceuticals companies applying for US Food and Drug Administration (FDA) approval, ABL will file its FDA application in the next 12 months.

"We have commercialized three organisms till now. The natural bio-active molecules from marine fungi and marine bacteria have generated positive leads from which we have produced anti-diabetic, anti-Alzheimer and anti-viral products. We will file drug applications for the same in the next two years. We also have 12 technologies waiting to be commercialised in the bioactive space," Isaac added.

Backed by new launches ahead in the coming year, which will include DHA (docosahexaenoic acid) and phycocyanin, ABL expects to garner a turnover of Rs 50 crore by 2008 and Rs 500 crore in the next five years.

DHA production is expected to account for half the company's turnover projections for the next five years.