The APIDC VCL is keen to support companies that are ready to invest in India in improving the healthcare infrastructure. Drug discovery, pharmacy chains, hospitals (primary, secondary and tertiary), diagnostic centres and specialty clinics are some of the potential areas of investment, Sarath Naru, managing director, APIDC-VCL (Andhra Pradesh Industrial Development Corporation Venture Capital Ltd) told Pharmabiz.

With the presence and supply of spurious drugs in the country, organised pharmacy trade can be a solution. Efforts should be made that pharmaceuticals are available in semi-urban and rural areas.

Naru said, "APIDC VCL has made nine investment commitments so far. Four out of these nine companies are overseas companies. VCL is keenly looking at the diagnostics segment. It has found six diagnostic technologies that have relevance to India and developing markets. It is also open to fund viable ventures in clinical trials."

APIDC VCL is expecting the total outlay of venture funding to be in the tune of Rs 70 crore. About four to five companies will be funded by the end of financial year 2005-06. Raising funds is always a challenge for Indian venture capitalists, he added.

Companies with big idea and science are still lacking in India. This is making Indian venture capitalists to look for companies in the US and Europe and bring them to India, Naru noted.

On the other side, fund managers are investing only in matured companies in India. In developed markets, they are ready to fund early stage companies. In India, there are many unmet needs in biotech, and venture capitalists have a role to play in early stage funding in the segment. Funding with hand-holding for bringing new technologies and marketing alliances that will add values is the need of the hour.

Diagnostics is a neglected field. VCs in the West prefer to fund drug discovery companies rather than funding diagnostic companies. There are many diagnostic technologies that have relevance to the US, APIDC VCL is identifying such technologies and bringing the companies with these technologies to invest in India. In countries like India, detection technologies for breast cancer can be useful.

In India, CSIR labs too have a major responsibility in developing technologies that can be commercialised. The culture of chasing a big idea is still emerging in these labs. Translating technologies into commercially viable models is the need of the hour, Naru added.