Hyd startup UR Advanced Therapeutics set to launch kit for detecting dying cells

Jaganmohan Reddy, CEO and CSO, UR Advanced Therapeutics Pvt Ltd

A noticeable and commendable shift, though slow-paced, seen in the pharma world is novel products developed by startups over generally marketed generic ones. Hyderabad, well known as the City of Pearls is now the Pharmaceutical Hub. Research academicians are coming out of their comfort zone with a vision to promote innovation. One of the few research startups present in India is, Hyderabad-based UR Advanced Therapeutics Private Limited. The biotechnology research startup was founded by Dr Jaganmohan Reddy in 2020. He holds 23 years of experience as research scientist in healthcare sector of Sweden and India. URAT is the vision of a team of academicians from diverse deep biological technology backgrounds wanting to establish a R&D company, with a focus to work towards innovations in designing synthetic peptides for tissue engineering and therapy

Generally, natural proteins present in our body are made up of several amino acids linked to each other to make a string that fold in a very specific three dimensional pattern to make a functional unit. These scientists at URAT, using advanced bioinformatic tools, are designing these functional units with minimal amino acids using chemical modifications artificially. “Our vision going ahead is to develop deep learning AI-based methods to predict, miniaturize and imitate such functional units. Such an AI/ML-based programme that can identify and give the best input to synthesize a peptide to imitate the function of bigger protein would provide a robust platform to make very efficient, target specific and economical solutions to the otherwise current high cost, production intensive therapeutic proteins. Using the newly developed methods at URAT, the small synthetic peptides can be synthesized robustly and also, new proteins can be designed that can address the multitude of issues in tissue engineering, therapeutics and artificial meat production,” says Jaganmohan Reddy, CEO and CSO, UR Advanced Therapeutics Pvt Ltd, in an interview with Bizz Buzz

Tell us about the current innovation that URAT has lined up for launch?

By using our manual and bioinformatics tool, we have made one large 300 amino acid length protein Annexin V into a small effective 15 amino acid molecule that will exactly mimic the function of Annexin V in detecting dying cells in our body. The fluorescent tagged Annexin V kit is used widely by the drug discovery, cancer biology, infectious biology research groups as a tool to test the drug efficacy and toxicity in research and diagnostic laboratories. Such kit requires the use of buffer that contains high concentrations of Calcium which is toxic to wide variety of cells. The miniaturized version developed by us does not require any buffer. As it is a single step reaction, it can screen many drugs and identify the absolute dead cell induced by the testing agent. This is one example where our work is beneficial. Also, by injecting our molecule, cancer can be detected at an early stage and this molecule can be used as a vehicle for delivery of drug directly to the cancer site. The product is ready right now, and initially we will supply it for research purpose to R&D companies/labs and drug discovery pharma companies. We have filed for patent in India and will be competing globally too.

Could you provide details about your second innovation?

The second line of work is related to tissue engineering, also called, organ regeneration. We have selected different structural proteins such as collagen present in our body and imitating their functions so that they can be formulated as per the organ/tissue to be used for tissue engineering. As common practice, for 3D bioprinting, stem cells and generic matrix/collagen are used. We are developing specific small peptide-based formulations for each and every specific organ which can be used for 3D printing along with any kind of cell that one wants to use.

After having worked for 23 years as research scientist, what was the reason behind starting URAT?

Initially, I ventured into research and innovation with my students, later my colleagues joined too. Currently our team is 10-12 members with mostly scientists holding vast experience in the areas of biomaterials, immunology, bioinformatics, cell and molecular biology, stem cell biology and cancer biology. In India, very few companies are into pure innovation and work towards furturistic technologies. Most startups are focused on providing cost effective solutions to the already existing therapies or many of them come with generic products. We are particular about developing novel products and come with innovation that can compete at global stage. Since there is severe dearth for technically trained people, we groom each individual by letting them take up a project. We guide them in developing novel products as we want to bring balance in the economics of industry and academic research rigor to bring innovation. Though we have thousands of PhD students being produced in our country, very few institutions bring out good quality of PhDs, this resembles in the publications where we have quantities over quality. We understand this situation and that is the reason behind making URAT an innovation platform.

What strategy have you adopted to meet your aim as a researcher?

Our vision is to make therapeutics and applications in tissue engineering. Now, we have come up with products that can be commercialized immediately. Several products in the pipeline will be launched over the next three years. Once we have definite commercials, we will infuse entire revenue into the startup for developing much more advanced products which can generate revenue probably after seven to 10 years. We are launching our cell detection kit for around Rs 20,000 - the competitive price is Rs 30,000-40,000. This has been tested by 10 labs in India, and now we are sending it to international academicians. We are also holding discussions with national and international distributors. Currently we have been using third party manufacturing unit, hence for mass production of the kits we will be setting up our facility in Hyderabad. Initially for research purpose, and to reach the global market, we will produce around one lakh kits. The tissue engineering kit will take another six to eight months as the pre-clinical, and animal trials are pending. And, we will undertake trials for the dead cell detection kit by 2025.

Is there any new product or research in the pipeline?

These two are the major products in our portfolio. The other products that we will come out in future will be the extension of these. The core of our startup is to develop AI, ML-based programming to develop smaller protein. These products are the outcome of the technology we have developed. Under the tissue engineering kit, the final product in the form of gel/tissues will be injected at target site making treatment affordable, effective and advanced. And, the dead cell detection kit, after completing the trial phase will be marketed to diagnostic centres.

Being a startup into research, what is your business plan?

We had set up our lab and started working on our product during the Covid period. But, due to Covid, it took us a while to raise funds. Through two grants we received Rs 1 crore and from friends and family we raised Rs 3 crore as working capital. We had our product ready by last year but as we had to connect with third party manufacturer, it took us this long to launch. In Indian market, we do not have competition for our product. The size of dead cell detection market is Rs 100 crore-150 crore. Even if we take 20 per cent of this market size, in the first couple of years we might make Rs 10 crore in revenue. After the launch of dead cell detection kit internationally, we are targeting $10 -20 million business in the next three-four years. And, once we enter with our products related to tissue engineering, diagnostics and therapeutics, the revenue will increase drastically. Now for setting up our own manufacturing facility and expanding the team we are looking to raise Rs 20 crore. We will add 25–30 employees, a mix of scientists and business professionals.

According to you, what factors can bring more research students into innovation?

During our period in the 90s, we hardly had the exposure to research and theoretically speaking research meant entering PhD. But, in today’s digital age, the current PhD students need to set their priorities straight, be it in academics or addressing problems related to science. If a student plans to enter innovation, academics are helpful till a certain extent, but what is a must is rigorous training. India is spending less than three per cent of the GDP on research, while the cost of setting up labs and its equipments are very high. Countries such as Germany possess deep pockets to spend on basic research. Another hurdle for PhDs is that in India there is a distribution system in place, wherein pharma companies that provide products for the labs sell their products through a channel, this brings the delivery time to six to eight weeks, while the same abroad is two days. What happens here is students end up spending more time in the PhD than they should be and absence of proper equipments or dynamic way of doing things demotivates them. So, in terms of knowledge students are good but when it comes to solving problem or developing new knowledge students step back due to fear of failure. This upbringing of students makes them averse to risk of failure.

What support does biotech research startup like URAT look forward to?

It is not only the government that needs to support research in India but it also includes investors. Investors infuse money into IT-based or infra related companies but the much needed long-term vision for investing in research-based science related startups is missing. Organisations like FABA (Federation of Asian Biotech Associations) are making efforts to bring support from pharma companies for startups. Here and there, few things are happening but much more can happen. A pool of fund can be created wherein all the pharma companies can contribute which in turn will boost innovation and research from startups. As, I feel that innovation can take place only at startups rather than in big companies where bureaucracy and dispersed ideas are predominant. What is most important for a vibrant research ecosystem is support extended to deep tech innovators over generic startups.

(This is the fourth article of WTC Shamshabad-FABA Startup Series, a collaborative effort of World Trade Center - Shamshabad and Federation of Asian Biotech Associations (FABA), a global platform for the development of biotechnology, to highlight the achievements and accelerate growth in the Life Sciences industry)