Ranbaxy Laboratories has pitched in to acquire Biovel Life Sciences Ltd, a little-known, closely-held biotechnology company based in Bangalore, according to information Business Line obtained from top sources in both the companies.
Ranbaxy is among a handful of bidders such as Avesthagen Ltd, Bangalore, and Shantha Biotechnics Ltd, Hyderabad, that have eyed Biovel, either to create or improve their biotherapeutics footprint, it is learnt.
A deal figure of Rs 50 crore has been mentioned in circles familiar with the move but this could not be ascertained.
Biovel has a Rs 45-crore facility on ten acres in Hoskote, about 40 km from Bangalore. The 80-people company was started in 2004 by a group of professionals from the pharma industry, underwent in early 2009 a management reshuffle, and a few months back reportedly put on the block.
Mr B. Pratap Reddy, Biovel's Chairman, when contacted, said, “We are talking with a few companies and Ranbaxy is among them. Nothing has been finalised yet. We will sell it to the highest bidder,” but did not provide financial or other details.
A similar indication came from a Ranbaxy source, but the company spokesperson said, “We do not comment on speculation.”
Biovel is engaged in developing biogenerics (patent-free biotechnology therapies) and bacterial vaccines and has the capability to do contract research, contract manufacturing and drug delivery systems, according to its Web site. It has a liaison office in the US.
