MWG Biotech Pvt. Ltd, a subsidiary of Germany-based MWG Biotech AG, has invested 400,000 euros to set up a production plant in Bangalore for the manufacture of synthetic nucleic acids like oligonucleotide besides hybridisation and sequencing services. With this investment in India, the facility becomes the third global manufacturing base for the parent company after Munich and US. It is also in the process of increasing its technical staff from the present 14 to 22.
In August 2004, the company will start micro array services, which is expected to be followed by the hybridisation services. "We have a set a sales target of 2.1 million euro from India which will be the base for Asian markets," Dr. Volker-Richard Muschalek, chief operating officer, MWG Biotech AG told Pharmabiz.com
The company is known for its proprietary synthesis method to produce oligonucleotides of highest purity, which is used for array production. The Indian facility was set up in a record time of 90 days. It includes a full-fledged production plant and sales network and the facility covers a 750 sq. m. Between 2005-'06, the company is expected to pump in another 1 million euro to expand its production plant capacity and strengthen its sales network.
Currently, Dr. George Becher is heading the Indian operations and by the year end the company will have an Indian chief to lead the operations here. For its sales and marketing network, the company will hire nine executives which include a director and marketing staff who will operations in four regions of the country. The company's major customers will be pharma-biotech and the scientific academia.
MWG Biotech AG set up in 1990 in Munich opened up its second base in US in 1999. It was looking at the potential Indian market but decided on setting up a dedicated plant for the region only because shipment of products from Germany or US was not a viable proposition, stated Dr. Muschalek.
The group, which is ranked second in Germany, is engaged in the production of DNA and RNA oligos, DNA sequencing, array technology, siRNA and lab automation. The company has offered its services for the Human Genome Project as a dependable provider for high quality synthetic nucleic acids. Despite being in a niche area of business, the company faces competition. "We stand to gain because of our tailor-made synthetic nucleic acids of reliable quality and purity," he informed. In 2003, the group registered a turnover of 43.7 million Euro with an annual growth rate of 10-15 per cent and hopes to corner earnings to the tune of 50.2 million Euro.
Impressed at the developments in research in India, Dr. Muschalek stated that the company is also scouting for research and development outsourcing business opportunities for its German operations. We would be keen to capitalise on India's strength in information technology for our Genomic Bioinformatics services, he stated.
Within the next three years, the company would also introduce manufacture of lab automation products which are third generation platforms featuring new liquid handling technology that are flexible customised and compact bench top instruments. From India, MWG Biotech would also expect a sales turnover of 5 million euros, he added.