Bangalore Genei, producing restriction enzymes, modifying enzymes, DNA vectors and molecular weight markers has been taken over by the Chennai-based Sanmar Speciality Chemicals Limited (SSCL). The acquisition was completed in the first week of December 2003.
The 13-year-old Bangalore Genei has a vision for becoming a Biotech/Molecular Biology products/research services provider in the global market. An association with a corporate group like Sanmar would facilitate its achievement, M S Sekhar, managing director, SSCL told Pharmabiz.com. "We will not be in a position to disclose any financial details of the acquisition," he added.
"The acquisition will also complement Sanmar's existing and growing chemistry services business. The acquisition will give Sanmar a competitive edge since there are very few companies combining biotechnology, custom chemical synthesis and contract research services," he informed.
According to Sekhar, the key reason for the acquisition is that Bangalore Genei would provide a platform for SSCL's entry into biotechnology and will complement the existing and growing chemistry research activities.
"Being part of the Sanmar Group will enable Bangalore Genei to grow its existing business both in terms of penetration into international markets as well as development of new products. The existing excellent technical capabilities of the scientists in Bangalore Genei will also provide a platform to grow into molecular biology and biotechnology research services," said Sekhar
On whether the acquisition would be commercially viable for Sanmar and on how Bangalore Genei's products fit into its current business portfolio, Sekhar stated, "Bangalore Genei is a profit making company and hence viable in its own right."
The acquisition will complement the existing and growing chemistry research services business. The future plans are to penetrate into international markets as well as develop new products and expand the contract research business.
When asked on the impact of the acquisition on the biotechnology sector, Sekhar stated, "We are unable to comment on the impact of the acquisition as the field is too large and our business would be small in comparison."
Dr P Babu, managing director, Bangalore Genei said that the company would continue its operations under Sanmar's wings from its present location in Peenya located in the outskirts in Bangalore.