IFC to give Rs 100 cr for AP biotech venture fund
By Syed Amin Jafri in Hyderabad
January 31, 2003
The International Finance Corporation is considering
assistance of Rs 1 billion for funding the biotech start-
ups in Andhra Pradesh.
Disclosing this at the three-day 'Biotech Invest 2003:
Global meet on strategic alliances and business
opportunities' that opened in Hyderabad on Friday, Chief
Minister N Chandrababu Naidu said that the IFC, the
corporate wing of the World Bank, would sanction the
money to Biotechnology Venture Fund set up by AP
government recently to provide much-needed venture
capital support to biotech companies.
Naidu said the department of biotechnology, Government of
India, has decided to set up a biotech incubator, with an
outlay of Rs 30 crore (Rs 300 million) in the Shapoorji
Pallonji Biotech Park.
The Indian Institute of Chemical Technology would provide
technical assistance for this project.
The chief minister said that the Indian Council of
Medical Research would be taking up an important project
-- National Animal Resource Facility for Biomedical
Research in collaboration with National Institute of
Nutrition (Hyderabad) and National Institute of Health
(US).
The state government has allotted 100 acres of land for
this project which would come up opposite the Biotech
Park in Genome Valley.
The Government of India and the Andhra Pradesh government
would raise resources to the tune of Rs 150-200 crore (Rs
1.5-2 billion) for the National Animal Resource Facility,
which would be promoted as a joint venture of the two
governments as well as private biotech and pharma
industries.
Naidu said that besides the Biotechnology Venture Fund,
the AP Industrial Development Corporation has set up a
Venture Capital Fund to fund biotech start-ups.
The APIDC has invested Rs 15 crore (Rs 150 million) and
the Andhra Bank has provided Rs 10 crore (Rs 100 million)
towards the corpus of APIDC Venture Capital Fund.
AP Industrial Infrastructure Development Fund has been
set up to provide equity support to the biotech
companies.
At the recent CII Partnership Summit held in Hyderabad in
January this year, eight MoUs were signed for biotech
projects, with total investments of Rs 538 crore (Rs 5.38
billion).
The chief minister said two world-renowned drug discovery
scientists Dr U Chandra Singh and Dr M Rami Reddy
launched Genomic Design Pharmaceuticals Limited, a San
Diego-based start-up.
The company is setting up its subsidiary in Hyderabad to
undertake drug discovery and development activities with
focus on novel small molecules and low molecular weight
peptide drugs.
The Genomik Design Pharma facility at Hyderabad, with
outlay of Rs 40 crore (Rs 400 million) in Phase-I with Rs
20 crore (Rs 200 million) raised from APIDC Venture
Capital Fund, would develop, manufacture and market
pharma drugs based on information generated by human
genome project.
The company has identified potential drug molecules for
cancer, AIDS, arthritis, anxiety, diabetes and premature
ejaculation.
Out of the 200 biotech companies in India, Andhra Pradesh
accounted for 75 companies, Naidu pointed out. He said
the Pacific Health Care Holdings of Singapore signed a
MoU for setting up a Rs 50 crore (500 million) hospital-
cum-biomedical research center at Hyderabad for research
on stem cell.
Similarly, Sri Venkateswara Institute of Medical
Sciences, Tirupati, has decided to establish a
biotechnology and bioinformatics center with focus on
stem cell research.
Detailing the steps taken by the state government to
develop Hyderabad as the biotech hub, he said: "We are
creating a world-class infrastructure in the Genome
Valley, spread over 600 sq kms, with ICICI Knowledge Park
and the Biotech Park as its hub. We are also striving to
set up an International Life Sciences Institute to
provide a link between industry and research. An action
plan to set up the Institute will be finalised in
February."
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