Mukesh 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.