Why is RLS interested in GeneMedix?
22 December 2006Mukesh Ambani is putting his biotech ambitions on the fast track. His biotech baby Reliance Life Sciences, Reliance Life Sciences, is buying controlling stake in UK-based biotech firm GeneMedix, reports CNBC-TV18. The company is picking up a controlling 74-per cent stake in GeneMedix, a small biotechnology company listed on the London Stock Exchange.
The Indian company will invest £32 million and aims to gain access to several technology platforms. GeneMedix has a clutch of Erythropoetins, which is a product used in the treatment of renal failure and chemotherapy.
GeneMedix also works on a few oncology products like GCSF, interferons and a few other therapeutic proteins.
However, as GeneMedix has been under severe financial crunch, the company had sought a strategic financial partner. Analysts say that Erythropoetin is a $10-billion market, while GCSF has a market of $3 billion.
And these could fetch strong returns for Reliance in the next few years, when the market for Biosimilars open up. But with approximately £3 million in losses, the turnaround for GeneMedix may take several months.