Suven Life to raise $20mn by fiscal-end to fund trails

Pharmaceutical company Suven Life Sciences today said it will raise $20 million before the end of this fiscal to fund clinical trials of one of its molecules aimed at treating Alzheimer's disease.

"Currently, we have 13 molecules that are aimed for treating central nervous system disorders. One molecule code named '502' has completed the first phase of trials.

"We are looking to enter the second phase of trials by 2011 for which we will require about $20 million," Suven Life Sciences Chairman and CEO Venkat Jasti told reporters here.

The company is looking at issuing convertible bonds which could include FCCBs with a tenure of about 3-5 years to raise the requisite fund.

"We expect success (of the clinical trials) in the next 30 months and that should give us funds for our further activities," he added.

He said that over and above $20 million required for the research of the '502' molecule, the company may need another $30 million to fund its various programmes.

"For the next level of funding, we are counting on the success of '502' molecule. If not then also, we expect success on collaborative efforts with big pharma companies from where we expect milestone payments," Jasti said.

Suven currently has a collaborative efforts with US-based Eli Lily, he said, adding the company is in talks with two other major pharmaceutical companies for collaborative research.

"We hope to establish on more partnership before the end of this year," he said, without disclosing details.

The company which clocked a revenue of Rs 130 crore last fiscal, is expecting 15-20 per cent growth this year, he said.