Dishman to buy biotech, nanotechnology CROs

Ahmedabad-based pharma major Dishman Pharmaceuticals and Chemicals (DPCL) is keen to acquire biotech and nanotechnology contract research organisation (CRO) companies in the US and Europe.

Talking to Business Standard, J R Vyas, MD of Dishman Pharma, said, "We are keen to acquire CROs companies operating in biotech and nanotechnolgy research."

However, the company is not so keen in clinical CRO business rather it is more interested in acquiring research companies that are involved in biotech and nanotechnolgy. "We believe that there is huge potential in biotech and nanotechnolgy research and it is the right area to venture into," Vyas added.

"The acquisition will be done through our wholly-owned subsidiary Carbogen Amcis AG," said Vyas. At present, the company has not taken any concrete steps towards acquisition but has already mobilised resources for searching out biotech and nanotech CROs companies.

Vyas is confident that the company will complete its CROs acquisition by mid of 2008.

The company is for acquisition of biotech and nanotech CROs companies that are based in the US and Europe. Informing the current position, he said, "We have asked some of the merchant bankers to identify the potential biotech and nanotechnology CRO companies for possible acquisition in the US and Europe," adds Vyas.

At present, its Switzerland based Carbogen Amcis AG provides process research services with a core competency in active pharmaceutical ingredients (APIs) along with full scale manufacturing service.

The acquisition of biotech and nanotech CROs will be to build over expertise of Carbogen Amcis AG which already possess the know-how and skills in APIs research. The new acquisition of biotech and nanotech CROs will take the Carbogen Amcis on the growth path, as per the company.

The company believes that the Carbogen Amcis AG with a pool of 171 Phd research is in a better position to utilise their expertise to develop the biotech and nanotech CROs under it.

The company is not looking for large size CROs, rather it is looking for knowledge based acquisition particularly those companies that possess intellectual property rights (IPR) for their products. "We would like to acquire CROs company that falls between the $5 million to $20 million range," adds Vyas.

The company is also planning to move out some of its Swiss subsidiary's large size contract manufacturing project work to its Ahmedabad based facility.

The Swiss subsidiary's largest reactor can process 300 litres of drugs, while Dishman's Indian operation's smallest reactor is of this size.

The company informed that four clients of its Swiss subsidiary will shortly visit Ahmedabad to examine the company's USFDA approved facility for sourcing out the contract manufacturing project work to India.