Hyderabad-based Celon Laboratories, a Sequoia-funded specialty focused pharmaceutical company, has entered into a joint venture with Aurobindo Pharma to develop, manufacture and market highly innovative and niche hormonal and oncology generic formulations to cater regulated markets, especially the US and Europe.
A special purpose vehicle (SPV) has been incorporated for the purpose of the new joint venture, called Eugia Pharma Specialities. Aurobindo Pharma owns 60% and Celon owns 40% stake in the joint venture. Sequoia has invested about R82.5 crore in Celon Labs.
Talking to FE, Nagesh Kumar, whole-time director, said the company is investing R200 crore spread over a period of three years. ?We would initially invest R90 crore as part of capex in the next 15 months and another R110 crore for scaling up batches of the products and obtaining USFDA approvals,?? he said.
Both the companies will be making significant investments towards this JV, including Celon transferring one of its upcoming hormonal manufacturing facilities in biotech park at Shamirpet, near Hyderabad.