Danish firm invests euro 5 mn in Avesta Nordic Research

Bangalore-based life-sciences company, Avestha Gengraine Technologies, has announced the closing of a strategic investment of €5 million in Avesta Nordic Research, a joint venture with CCBR (Centre for Clinical & Basic Research) and IFU (Industrialisation Fund for Developing Countries). Avesthagen had invested €2.5 million in the joint venture.

The investment comes two years after IFU first met with Villoo Morawala Patell, founder and CEO of Avesthagen and Claus Christiansen, Founder and CEO of CCBR in Denmark regarding a joint venture in India.

And IFU is an investment fund owned by the Government of Denmark with a mandate to promote economic activities in developing countries like India, by investing in commercial projects together with Danish industry.

According to Villoo Morawala Patell "This investment by IFU reaffirms our commitment to being a company dedicated to research and development in the biotech sector."

The joint venture will address the need of finding ways of effectively treating osteoporosis, a major concern among aged population," she added.

"The partners expect to put together a comprehensive platform to develop novel technologies that integrate the diagnosis and treatment of osteoporosis," she said.

Avesthagen also expects to link its competencies in pre-clinical research with CCBR's experience in clinical research in osteoporosis to develop nutritional bioactive ingredients and new drug leads. Both companies plan to jointly market these products globally.

Commenting on the investment, Dr Helle Bechgaard, chairman of Avesta Nordic, said, "IFU had been keenly watching the rapid growth in the biotech sector globally, but more especially in India through our office in New Delhi, over the past two years. We have made this strategic investment in Avesta Nordic because we believe in its platform and the huge potential of this sector. IFU has high expectations from its partnership with Avesthagen and CCBR in Avesta Nordic, as this is their first investment in the biotech sector worldwide."

"IFU saw in Avesthagen and CCBR two very professional and committed partners who were already well established within their respective fields in the industry," Dr Claus Christiansen said.

Centre for Clinical and Basic Research established in 1992 is a private research institute that works with conditions and diseases that arise in association with the menopause, especially osteoporosis.