Polyclone Bioservices Pvt. Ltd., a genomics and drug discovery research start-up, has invested Rs 50 lakh for its micro array laboratory located in the new incubation facility at the University of Agricultural Sciences (UAS), Dharwad in Karnataka.

The laboratory to be operational next month will focus on design of micro array, probes and hybridisation in cancer, diabetology and haemophilia.

The Bangalore-based Polyclone's lab will be a pilot model for other biotech entrepreneurs in Hubli and Dharwad. The company has set up a scientific advisory board headed by Prof. MRS Rao, head, micro array lab, biochemistry department, Indian Institute of Science and three US based professors, to advise on research in different types of cancer arrays, Naveen Kulkarni, CEO, Polyclone Bioservices told Pharmabiz.

Currently, the company is under evaluation for venture funding of about USD 2.5 million, by a team of capitalists from the US, UK and Germany. The deal is expected to be finalised by mid March 2006. These funds would be utilised for a dedicated laboratory for research on molecules and drug discovery in cancer and diabetes, he said.

The company has already received orders from customers abroad. Polyclone has roped in research tie-ups with Emphron, Australia, Karnataka Cancer Therapy, Hubli and State University of New York and Albany Cancer Research Centre.

Kulkarni said that efforts were also on to develop 'BIO-HUBli', a bio-cluster in Hubli with an investment of Rs 50 crore. Doan Associates, a project management consultant is now mediating with the Canadian biotechnology authorities for the required funding. A core team comprising experts from the educational institutions and bio-entrepreneurs from the region is trying to realise the project.

Hubli has advantages like easy availability of skilled personnel from the network of leading educational institutes including SBM Group, KLE and KIMS. 'BIO-HUBli' would provide the much needed fillip to support bio-entrepreneurship, stated Kulkarni.

According to Kulkarni, seed funding is a challenge for Indian start ups as even the Department of Biotechnology insist on a DST (department of science and technology) approved facility.