ABLE Demands Creation Of Rs 500 Cr Corpus Fund For R&D In Biotechnology

The Association of Biotechnology Led Entrepreneurs (ABLE) has appealed to the government for creation of a corpus fund of around Rs 500 crore for identification of novel leads through innovative research and development (R&D) in biotechnology.

In a pre-budget proposal to the Finance Ministry, ABLE has said that there is need to replace the existing reverse engineered biotech products with effective bio-molecule/drugs using high end tools. Creation of a corpus fund of around Rs 500 crore for identification of novel leads through innovative R&D in biotechnology will be helpful in this regard. The funding either as grants or risk capital in equity form could be executed or monitored by the Department of Biotechnology.

Stimulate innovation in research, provide an impetus to biotech industry, create an enabling environment and make available robust infrastructure are the three categories of recommendations of the ABLE to the Finance Ministry.

The capital should primarily be for those who intend to identify new leads. The grants are not for scale up or products made through process other than a biotech route. Further, the IPR arising out of this funding is to be owned by the researching entity fully. The return or benefit for the risk capital provided by the Government could be in the form of equity in the venture/special purpose vehicle.

The association has also called for weighted average tax deduction on R& D expenditure and inclusion of international patent filing costs u/s 35 (2ab). Further, extension of EoU benefits in line with SEZs, refund of service tax to be processed in a time bound manner, exemption for preclinical studies from service tax preamble and exemption of withholding tax for technology transfer and licensing, exclusion on customs import duty on R&D equipment and consumables are among the other demands.

Specific to diagnostic kits, ABLE has proposed duty exemption on products for infectious diseases and excise duty removal on molecular diagnostics for critical infections.

In a bid to provide impetus to the biotech industry, ABLE has asked for duty exemption norms for raw materials imported for indigenous manufacture of life-saving drugs and diagnostics, recognition of caner drugs as life-saving drugs and provide a two-year moratorium on obtaining price approval for products.

Under the category of creating an enabling environment and robust infrastructure, ABLE has requested for relaxed export obligation norms for biotech parks, waiver of requirements of filing form ER-5 & ER-6 under CENVAT Credit Rules 2004 and budgetary allocation for setting up a world class internationally accepted accreditation agency.

(Ref: The Chronicle Pharmabiz dated 14, February 2008)

Bangkok Heart Hospital Converts Patients' Blood Cells Into Stem Cells

Bangkok heart hospital, has invented a novel method of isolating stem cells from patients' own blood and it ensured that receivers need not undergo immuno-suppressor treatment.

Dr Thein Htut, medical director, clinical and interventional affairs of Theravitae Co. Ltd, while addressing a press conference on the sidelines of the ongoing conference of the Cardiology Society of India, here last week, said that the hospital had so far treated 250 patients. The success rate was between 70 and 80 per cent. The hospital is receiving eight to twelve patients a month.

Between 60 and 70 percent of the patients approaching the hospitals were from the US and remaining from India, Bangladesh and other countries. None came from Japan, Korea and China, he said.

Elaborating on the technique, Dr Htut explained that "Just 250 cc of blood will be taken from patient and it will be isolated and cultured. Only 15 cc stem cells will be injected into patient and they will proliferate up to 35 and 50 million. In one patient, they proliferated up to 72 million." Stem cells would be injected by 30 injections, each 0.5 cc, into patient's heart, he said.

Observations on patients showed that there was 7 percent improvement in functioning of the heart (left ventricle, the lower left chamber of the heart), he said. The technique has yet to be refined to ensure that functioning of the heart after receiving stem cells is improved further, he pointed out.

Dr Htut, however, cautioned that "Stem cell treatment cannot be given to emergency cases. Conventional methods of treatment are to be followed." The stem cell therapy would certainly improve the quality of life. But patients should follow rigours of medication even after receiving the treatment. The dosage of medication may be reduced during the course of time.

Even the old people in the age group of 60-90, too, were approaching the hospital for treatment. The institute was now concentrating on developing stem cells for other diseases like diabetes and Parkinson he said.

(Ref: The Chronicle Pharmabiz dated 20, December 2008)