Transgene Biotek sells Erythropoietin technology for US$5 million

Transgene Biotek, a Hyderabad-based company, has sold its technology for Erythropoietin to TSS Export GmbH FZE for a total consideration of US$5 million (approximately Rs 26 cr). This product is from the company's bio-generics segment. The sale is part of the company’s decision to out-license some of its technologies in order to focus on other products and technologies more profitable to the company.

Erythropoietin (EPO) is a glycoprotein hormone that controls red blood cell production. It is produced by recombinant DNA technology in a mammalian cell culture. The hormone is mainly used to cure chronic pain, neurological diseases, nephrological diseases, etc.

EPO is one of the 50 branded bio-drugs in India. The Indian EPO market has been growing at the rate of 20%, with an estimated worth of about UD$16.7 million in 2011. Bigger companies like Johnson and Johnson, Ranbaxy, Emcure, Micro Labs, Intas, etc. are very active in this market. Beside, there are many companies entering the market using recombinant DNA technology, which will further increase competition. With large companies already in the market, the pressure in this market is quite high, and we believe decision to exit the market would benefit the Transgene Biotek. 

Recently, the company has commenced the production of Docosahexaenoic acid (DHA) at 3rd party facilities. DHA is used to cure heart diseases and rheumatoid arthritis. The company has also out-licensed 2 of its technologies, a recombinant Hepatitis B Vaccine as well as Orlistat to undisclosed pharma companies.