'Lonza is investing Rs.405 cr in India'
May 09, 2011 | Monday | News

(L-R)
Mr Lukas Utiger,
executive VP, Head, bioscience division, Lonza and
Dr Harry S Rathore, MD & country
head, Lonza India
Lonza is one of the leading suppliers to the pharmaceutical, healthcare
and life science industries in the world. With a turnover of

129
billion (2.6 billion Swiss Francs) in 2010, it has emerged as the
global leader in the production and support of active pharmaceutical
ingredients. It has strong capabilities in large and small molecules,
peptides, amino acids and niche bioproducts, which play an important
role in the development of novel medicines and healthcare products.
The company operates mainly in three divisions: life science
ingredients, custom manufacturing and bioscience. In bioscience
division, it makes the tools that life science customers use to
discover, develop, make and test therapeutics. In this division its
products range from cell culture and molecular biology tools for life
science research to the media used in the production of therapeutics
and tests for microbial detection. In life science ingredients
division, it offers products used in nutrition and microbial control in
selected industrial markets. In the custom manufacturing division, it
is a partner to its pharmaceutical and biopharmaceutical customers for
their manufacturing needs.
As part of its new ventures and expansion plans in India, Lonza
recently announced the launch of its upcoming R&D facility in 26
acres of land in Hyderabad. In an interview with BioSpectrum, Mr Lukas
Utiger, executive vice president, Head of bioscience division, Lonza
and Dr Harry S Rathore, managing director and country head, India,
share their focus, future plans and outlook on the Indian market.
Q Where do you see
Lonza in the life science industry?
Mr Utiger: In terms of business
development, we have reached a mature stage with many developments in
product businesses. On the chemical front, we have come up with
biosimilars and on the application front, we are aiming at bioscience
for pharmaceuticals. Our focus is selling, providing services, and
R&D in India.
Regenerative medicine is the future in life science industry. We focus
on using regenerative medicine in areas like cardiovascular, brain
health and metabolic related changes. Cell therapy will improve the
quality of life. More than 220 million diabetic people worldwide
were cured by human embryonic cells. By 2020, we aim to develop
complete regenerative cure for diabetes and cardiovascular disease. We
also aim to enter organ engineering by 2030.
Q What do you see in
terms of potential in the India market?
Mr Utiger: India is a
country, which is rich in every aspect. We have lots of opportunities
and it is well connected by air, sea and road. We also have
well-educated people. In terms of business, the best aspect is the very
high import tariffs. Compared to other countries, this attracts each
and every company to this country.
In terms of development in India, drug discovery has to develop more.
Currently, Lonza is investing $90 million (

405 cr) in India. We have
recently launched a new R&D center in 26 acres of land at Genome
Valley in Hyderabad. The knowledge center will function as a major
global R&D think tank for Lonza's biosciences.
Q What do you consider
as the USP of your products?
Dr Harry S Rathore: The Lonza
brand in itself is the unique selling proposition. The quality and
brand come as complementary to each other. The size as well as
financial stability are the other major strengths of our company.
Q What do you consider as challenges for
Lonza in India?
Dr Harry S Rathore: There is a
dire need for single window approval. We are planning to develop a new
facility in the SEZ area and the entire procedure itself takes time. We
are capable of completing our project by 2012 but the entire delay is
with approvals, time and people. Hunt for talent is also one of the
major challenges we need to address.
Q What is your investment plan for 2011?
Mr Utiger: We have a budget of
around

1500 cr (300 million Swiss Francs) per year. In the biopharma
sector, we are focusing on very substantial investment, in which, major
part goes to Asia. India will also be our special focus. Bioscience is
another sector where we will invest more. The manufacturing cost factor
entirely depends on the demands of the customer.
Q Where do you see
Lonza 10 years down the lane?
Dr Harry S Rathore: The company
sees good growth 10 years down the lane. We would develop further in
the area of nutrition. Docosahexaenoic acid (DHA), an omega-3 fatty
acid would be the key product and we are also looking at new compounds.
With new technologies, we would create new platforms in the
manufacturing area. The company would get closer to customers in
several areas and we would also take a step forward in nutrition and
biopharma.
Suchitra Pillai in Hyderabad