Friday, November 21, 2008
Avesthagen IPO shelved
Looking at the current financial turmoil in the markets the Bangalore-based biotech company Avesthagen, has shelved plans for an initial public offering (IPO) and will look instead to raise money from private investors, reports the Economic Times.
Villoo Morawala Patell, chairperson and managing director of the company said they were looking to raise $30 to $50 million to ensure that their nine products, which are scheduled to be developed for the next two years, reach the market on time. She had earlier denied stake divestment stating abundant private equity partners as the reason and had proposed to take their product line to the public and market.
This decision comes on the heels of news that Nestle Nutrition has rejected seven out of eight nutritional bioactive molecules that were developed as part of a joint venture with Indian biotech company Avesthagen Ltd, sources have said. Nestle's health food and nutrition division's move has shelved a proposal to use these ingredients in health food for diabetics that the Swiss giant had planned to launch globally.
The source cited Nestle R&D communications head Hilary Green as confirming the collaborative agreement with Avesthagen had been terminated.
Villoo Morawala Patell was quoted as saying: "Nestle has returned some of the compounds to us, and we are free to further develop them on our own or with other partners."
Villoo Morawala Patell, chairperson and managing director of the company said they were looking to raise $30 to $50 million to ensure that their nine products, which are scheduled to be developed for the next two years, reach the market on time. She had earlier denied stake divestment stating abundant private equity partners as the reason and had proposed to take their product line to the public and market.
This decision comes on the heels of news that Nestle Nutrition has rejected seven out of eight nutritional bioactive molecules that were developed as part of a joint venture with Indian biotech company Avesthagen Ltd, sources have said. Nestle's health food and nutrition division's move has shelved a proposal to use these ingredients in health food for diabetics that the Swiss giant had planned to launch globally.
The source cited Nestle R&D communications head Hilary Green as confirming the collaborative agreement with Avesthagen had been terminated.
Villoo Morawala Patell was quoted as saying: "Nestle has returned some of the compounds to us, and we are free to further develop them on our own or with other partners."
