Indian biotechnology company Transgene Biotek Ltd to raise Rs. 500 Crore via GDRs/ADRs and other securities

Indian biotechnology company Transgene Biotek reported its planning to raise funds for financing its aggressive expansion strategy. Transgene said it had settled on raising funds from either international markets through issue of equity shares, FCCBs, GDRs, ADRs and or other securities inclusive of debt instruments or from local offerings via FPO, Preferential issue, Rights issue of equity shares of up to Rs 500 Crore.

The company said that it approved to raise its authorized capital to Rs.75 crore from Rs.20 crore. In that regard, Transgene Biotek is to raise about Rs 500 crore, the amount the firm says it needs for its expansion strategy.

Transgene Biotek’s board authorized the share capital increase from Rs.20 Cr to Rs.75 Cr. Transgene Biotek was promoted by K K Rao, renowned Indian biotechnologist about two decades ago and is involved in the manufacture and sale of drug delivery systems, bio generics, human vaccines, and pharmaceutical products in India.

The firm as well provides contract R&D and pre-clinical and clinical research services to bio-pharmaceutical companies. Transgene Biotek had earlier out-licensed a manufacturing process to Dr Reddy's Laboratories and its recombinant Hepatitis B vaccine technology to vaccine producer Serum Institute of India. Its expansion plans are inclusive of the firm’s earlier announcement of its foray into the US. Transgene announced it is planning to acquire Marillion Pharmaceuticals Inc, a US-based Oncology biopharma research firm based in Exton, Pennsylvania, in an all-share deal.

Transgene Biotek Limited is an India-based company. The Company is engaged in providing diagnostic services and producing tissue culture plants. The Company generates revenue from the sales of products and medical diagnostic services. The products in the development stage include Cancer Drugs, Novel Vaccines, Bio-generics, Oral Drug Delivery System and Generic active pharmaceutical ingredient (APIs).

Transgene Biotek Ltd (TBL) was set up in 1991, and was probably the first true Biotechnology Company in India. It is listed on the Indian Stock Exchanges and is involved in the development of several cutting edge technologies.

From the knowledge gained in developing recombinant vaccines successfully since 1994, and having gained considerable experience in improving the technology processes of those products, Transgene has expanded its product portfolio to other therapeutic areas such as Bio-generics, Oncology and New Drug Delivery Systems among others.

8 Nov 2010.