The deal is a further sign of the ambition of Indian firms to break into the burgeoning biopharmaceuticals market, which was identified as a key target growth area for India at the recent Interphex show in Mumbai, and is tipped to generate $5bn (€3.5bn) in revenue in the country by 2010, up from its current figure of $1.5bn.
India's Avesta Biotherapeutics and Research is now the new owner of Berlin-based Siegfried Biologics and its 50 employees, gaining a capability in developing biologics, from cell line generation, upstream process development, through to manufacturing.
Avesta plans to use the facility to make an entry into the world of making good manufacturing practice (GMP)-compliant biopharmaceuticals for the regulated US and European markets.
However, the Bangalore-based firm said it will initially concentrate on manufacturing biologics for the semi-regulated markets of Brazil, Russia, India and China, where small molecule drugs prevail in the market.
Meanwhile, Siegfried initiated the divestiture as part of a refocus that will allow it to centre its business around two core areas: the manufacture of active pharmaceutical ingredients (APIs) for the global market, and the development and manufacture of complex generics.
Siegfried's CEO, Douglas Günthardt, indicated that the proceeds from the sale of the biologics unit will be used to fund development in these two core areas.
"The sale of our Biotechnology division is a further step in the concentration process of the Siegfried Group...
In the future, we will apply all our resources to these business areas," he said.