India's biggest drug maker, Ranbaxy, has acquired Biovel Lifesciences, a Bangalore-based biotech company making typhoid and influenza vaccines, for an undisclosed sum.
With this, Ranbaxy would make an entry into the vaccine business. "With an increasing focus on prevention of disease, the importance of the vaccine market has never been greater.
"This transaction with Biovel provides us an entry platform to manufacture vaccines as well as biotherapeutics. The vaccine and biotherapeutics business will be an important part of our growth strategy," Ranbaxy CEO and MD Atul Sobti said in a statement.
Ranbaxy, which ranks second in domestic sales among drug companies (it is the largest in total sales), has announced plans to be the market leader in the next few years.
Biovel has been working on biotechnology products in segments such as cardiology, endocrinology, oncology, dermatology and gynaecology.
Biovel Chairman Pratap Reddy said Ranbaxy would be able to leverage its modern manufacturing infrastructure and product pipeline. "We are sure that Ranbaxy, with its global market reach, quality and manufacturing expertise, will be able to leverage this to its full potential, and create a business of scale," Reddy said.
Ranbaxy has been strengthening its biotech business through a string of small scale acquisitions in recent years.
The company has a majority stake in Hyderabad-based Zenotech and an investment in Krebs, a biotechnology company.
