Strides Arcolab has inked a pact worth $34.4 million (over Rs 185 crore) with Bio-XCell to set up biotech facility in Malaysia.
Agila Biotech (Malaysia), a subsidiary of Strides Arcolab Ltd, and Bio-XCell Sdn Bhd have inked a $34.4-million build and lease agreement for the establishment of a customised biotech facility at the Bio-XCell biotechnology park in Malaysia, Bangalore-based Strides Arcolab said in a statement.
“Both parties are aiming for the R&D and manufacturing facilities to be operational by end-2014,” it added.
Commenting on the development, Agila Biotech (Malaysia) CEO Anand Iyer said the facility at Bio-Xcell represents a strategic move to further bolster the company’s manufacturing presence in the region and tap into unmet global demand and window of opportunity in biologics.
As part of the agreement, Bio-Xcell would fund around $22 million which will cover the construction of the building and part of the equipment. On the other hand, Agila Biotech would fund around $13-15 million for equipment and other services, the company said.
“The proposed facility at Bio-XCell will include a mammalian cell culture single-use technology manufacturing suite, a microbial fermentation single-use technology manufacturing suite..,” the company said.
Agila Biotech (Malaysia) is also building a biologics R&D facility in Bangalore that will support and complement its operations in Malaysia, it added.
Bio-XCell, a biotechnology park and ecosystem dedicated to healthcare and industrial biotechnology, is being developed by Malaysian Bio-XCell Sdn Bhd, a joint venture company formed between Malaysian Biotechnology Corporation and property developer UEM Land Berhad in 2009.
Shares of Strides Arcolab ended at Rs 868.35 apiece on the BSE, down 2.09 per cent from their previous close.