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Strides' arm to set up facility in Malaysia

The Build and Lease agreement involves an investment of $34.4 million

Mahesh Kulkarni  |  Bangalore 

Agila Biotech (Malaysia), a subsidiary of Bangalore-based Strides Arcolab Ltd, has signed an agreement with Bio-XCell Sdn Bhd (Bio-XCell) for the establishment of a customised biotech facility in the Bio-XCell ecosystem in Nusajaya, Johor, Malaysia.

The Build and Lease agreement involves an investment of $34.4 million.

The agreement was signed between En. Rizatuddin Ramli, CEO of Bio-XCell and Anand Iyer, CEO of Agila Biotech (Malaysia), replacing an earlier agreement signed in May 2011.

"Agila Biotech (Malaysia) is poised to be a major anchor tenant for the Bio-XCell ecosystem and we are extremely pleased to be able to offer our services and support for this promising project," En Rizatuddin Ramli said.

Bio-XCell will fund RM67.32 million (about $22 million) under the Build and Lease Agreement with Agila Biotech, which will cover the construction of the building and part of the equipment.

All other related equipment, integration service and testing of this turnkey project, estimated at $13-15 million will be funded by Agila Biotech from internal accruals and funding from external sources, the company said in a statement.

Work on the facility for the end-to-end manufacturing of biologics located on an 8.77 acre plot is expected to start as soon as all necessary clearances and permits have been obtained and all supplemental agreements have been executed.

Both parties are aiming for the R&D and manufacturing facilities to be operational by end 2014.

"The facility represents a strategic move to further bolster Agila Biotech's manufacturing presence in the region and tap into unmet global demand and window of opportunity in biologics. The proposed facility will include a Mammalian Cell Culture Single-Use Technology Manufacturing Suite, a Microbial fermentation single-use technology manufacturing suite, a fill and finish suite, analytical / QC / R&D labs, utilities infrastructure and offices," Iyer said.

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First Published: Tue, March 19 2013. 11:18 IST