The issue proceed would be directed at funding major acquisitions and research projects to be taken up by the company. Later, Shantha Biotech would seek a secondary listing on the Bombay Stock Exchange without raising any capital. The company has invested Rs 1.95 crore to pick up 51 per cent in the venture, Reddy said and added that East West had developed four anti-cancer monoclonal antibodies and also held exclusive worldwide license agreement for an antibody for the treatment of lung cancer. Monoclonal antibodies act as powerful therapeutics against a wide range of human diseases and would enable Shantha to roll out one product every three years, he explained. The new company will manufacture beta carotenoids from marine organisms.
Carotenoids act as antioxidants, protecting cells from free radical attack.
The company also claims to have developed interferon alpha, under Shanferon brand, which is currently undergoing clinical trials and should enter the market early next year, according to a company release here. Other products in the pipeline are combination vaccines, insulin, and streptokinase. The company is planning to go for an IPO early next year. Reddy said the company would start commercial production and marketing of interferon alpha,which is widely used in treatment of cancer and viral hepatitis, in May 2001.