GVK Biosciences Pvt. Ltd, a Hyderabad-based contract research organization (CRO), on Friday said it plans to invest around 100 crore to set up a new facility in the coastal city of Vizag as part of its expansion plans.

The new facility will house chemistry and biology laboratories of 200,000 litres capacity, the company said.

The proposed plant, to come up a on 10 acre land parcel in Ramky Pharma City in Vizag, is expected to be completed in two years time, said Manni Kantipudi, chief executive officer of GVK Biosciences said.

Earlier this year, GVK Biosciences set up formulation plant in Bangalore.

Kantipudi, without disclosing revenue and profit figures, said GVK Biosciences registered topline growth of 40% in the quarter ended 31 December, with a much better percentage of profits.

GVK earns about 50% of its revenue through drug discovery research services, while the remaining comes from contract manufacturing, informatics and clinical research.

Kantipudi said the clinical research business that contributes 11% revenues was hit by government’s new guidelines on clinical trials and legal issues.

“There is lack of regulatory clarity on clinical trials, and government is not giving approvals for fresh clinical trial programmes," Kantipudi said.

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