LifeCell mulls stem cell bank in Malaysia

Chennai-based LifeCell, a pioneer in the stem cell repository and research, is planning to set up a greenfield umbilical cord stem cell bank in Malaysia and Riyadh, Saudi Arabia, said Chandra Mouli, chief executive officer of LifeCell.

Presently, the company is scouting for partners in Malaysia as it plans to set up the centre in a joint venture (JV) with local players. The department of biotech of the Malaysian government has responded positively to the company's proposal for setting up a stem cell bank in the country.

The company is scouting for a partner that would fund its project in Malaysia. However, it has kept its options open as it is also exploring the possibility of setting up a 100 percent subsidiary in Malaysia.

The work on the project in Malaysia is set to start by April-end of the present calendar year. The company expects to complete its Malaysia project in six to eight months.

Similarly, the company will set up a joint venture stem cell bank in Riyadh. It is expected to start the project by the beginning of 2008.

The company has spoken to a few prospective businessmen hailing from the biotech field in Riyadh, but its too early for it to conclude any agreements in the Riyadh project. "The proposal for the Riyadh project is in its initial stage," said Mouli.

LifeCell also seems interested in setting up a research and development (R&D) and transplantation centre along with stem cell bank centres in Malaysia and Riyadh.

The total investment for both the projects would be Rs 20 crore. The investment will be a mix of debt and equity. "We will raise fund through loan as well equity," said Mouli.

Soon the company will also start its stem cell centre in Colombo. It would be a franchisee model, with a local partner. This will be a collection centre for the company and the collected stem cells will be transfered to its own stem cell bank in Chennai.

Bangladesh, where the company has a tie-up with a local hospital for collection of stem cells, will have a centre of its own. However, the company made it clear that it would not have any centre in Nepal and Bhutan, due to the small population size.