Reliance Life closes in on $1 bn US buy

Mukesh Ambani-promoted biotech venture Reliance Life Sciences is close to acquiring a US company for nearly $1 billion (Rs 4,500 crore).

Sources in the know said the acquisition, which might be announced in a month or so, was a part of Reliance Life's global expansion strategy. When contacted, a Reliance spokesperson declined to comment.

Reliance Life is in an advanced stage of negotiations with the company, which operates in the genetics and nanotechnology space. It is also in talks with a few foreign companies for strategic alliances on research.

The aims of the alliances include development of new research tools in the life sciences space.

Incorporated in 2001 as Reliance Industries chairman Mukesh Ambani's new millennium initiative, Reliance Life's cell biology research centre in Mumbai is the first of its kind in Asia.

The company has invested nearly Rs 1,500 crore (Rs 15 billion) in its existing facility in Mumbai and plans to set up a second unit for manufacture of plasma proteins. The investment for the expansion plan is pegged at Rs 1,000 crore (Rs 10 billion). The second unit is expected to be commissioned next year.

Reliance Life conducts microbiological and clinical research and is also into areas like plant tissue culture in biotechnology. The company plans to foray into the pharma business for generics and contract manufacturing.

As part of its plan, the company will manufacture off-patent drugs and is tying up with major drug-makers for contract manufacturing.