Rechristened SAP to invest USD 15 to 20 million

Hyderabad, Nov 15: Evolving as India's only Contract Research Organisation (CRO) exclusively to provide Chemistry support to pharmaceutical reserach and development, Sai Advantium Pharma (SAP) plans to invest USD 15 to 20 million in upgrading its existing facilities as part of its strategic growth plans.

In July 2006 Sai Life Sciences, a Contract Research and Manufacturing (CRAM) provider, acquired Pune-based Advantium Pharma Private Limited (APPL) and created SAP to enhance the company's reach into the world drug discovery and development activities of biotech and pharmaceutical companies.

CRAMs will continue to be the base of the company's business model. In the next 12 to 18 months, the company plans to expand to add other drug discovery and development services, Company Chairman and Managing Director K Ranga Raju told the media here today.

The company has five sites (three in Hyderabad, one in Bidar of Karnataka and a new one in Pune) which house modern and well equipped laboratories and manufacturing facilities. As a part of its expansion plan, the company was setting up additional lab space of 53,000 sft at ICICI Knowledge Park, Hyderabad for Chemistry process research and development.

The company posted USD 10 million business last year was targetting USD 18 million this year. It was also scouting for a strategic partner by first quarter of 2007 for a possible equity participation. With 600 employees, the company aim to be a leading integrated CRO to support global drug discovery and development.

'We are setting up the best facilities, with the best professional management to support our global customers', Mr Raju said.

According to Goldman Sachs, the global discovery and development outsourcing industry was expected to grow from today's USD 7 billion by 2010. Many global companies were confronted by value crisis as they try to sustain a business model based on high costs of manufacturing, R&D and marketing, increasing regulatory scrutiny and reimbursement pressures. This was giving an opportunity to emerging countires like India. 'In the changing landscape, Indian companies equipped with skilled resources, cost advantage and protection of intellectual properly were well positioned to attract large global companies', Mr Raju added.

UNI