Evolvence invests Rs 120 crore in Gland Pharma expansion

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Hyderabad, Jan 11: The Rs 100-crore Gland Pharma Ltd has signed an agreement with Evolvence India Life Sciences Fund, a private equity fund focused on investments in life sciences businesses in the country, for capital infusion of $30 million (Rs 120 crore). The proposed fund is to support its expansion at its manufacturing facilities and fund research and development activities. The company is also open to acquisitions in the near future.

Announcing this to the media, Ravi Penmetsa, vice-chairman and MD, said that the capital infusion of $30 million would help to vertically integrate the manufacturing capabilities, fund capacity expansion and file more Abbreviated New Drug Application (ANDA).

Besides, the company is bullish over exports to the regulated markets and expects 60% of its revenue to come from these markets in the next two years.

Gland Pharma has a pre-filled syringe facility in the country. Some of the companies’ products include heparin, enoxaparin and dalteparin, used to treat blood clots and rocuronium, atracurim, etc used in anesthesia. The company is in the process of developing generic products in the oncology and anesthetic segments.

On the industry trend, generic injectables market is expected to substantially increase. Sales of non-biological injectables in 2005 were estimated at $20 billion, out of which generics accounted for about $8 billion, patent on non-biological injectables with sales of about $12 billion are slated to expire in the next three years.

During the same period, patents on biological injectables with sales of about $27 billion are slated to expire.

Targeting a turnover of $35 million for March 2008, the company has pursued an aggresive international growth strategy that includes strategic alliances and acquisitions coupled with operational improvements.

Evolvence investment plan

Evolvence India Life Sciences Fund (EILSF), a Mauritius-based private equity fund, sponsored by Evolvence Capital, an alternative investments company with $1.5 billion of assets under management, is likely to invest in about four companies which are claimed to be ‘fast growing’ companies in the life sciences sector. Says Hari Bugggna, MD, Invascent-Investment advisor to Evolvence India Life Sciences Fund, ‘’We have plans to invest in companies every quarter.

We have identified about four companies which are in the areas of active pharmaceutical ingredients (APIs), contract research and manufacturing services (CRAMS), disease management and CRO space.’’

The next announcement is expected during February end for a company based in western part of the country, he added.