Six-year-old biotechnology company, Avestha Gengraine Technologies Pvt. Ltd. (Avesthagen) has raised funds to the tune of € 25 million (around Rs 150 crore) from the series 'C'. The investors in the series C include Fidelity International (€ 10 million), two French-based enterprises Limagrain Group (€ 5 million) and Danivest of Danone Group (€ 4.5 million) and media major Bennett Coleman.
The company has also received a valuation of Euro 115 million (around Rs 667 crore). It is also gearing up to go public in mid 2008. The maiden launch of it's the bio pharmaceutical generic, developed in partnership with Cipla, is expected to hit the market in 2007.
"The new investors further strengthen the existing shareholder base that includes ICICI Venture, Cipla, Godrej Industries, Tata Industries and BioMerieux. The funds will be utilized for infrastructure expansion: setting up state-of-the-art manufacturing units, R&D laboratories, acquisition of technology companies in the domestic and overseas markets and increasing its global presence," stated Dr Villoo Morawalla Patell, founder and CEO, Avesthagen, at a press conclave.
The investments expected from the company in bio pharma (Rs 100 crore), bio nutritional (Rs 70 crore), Bio agric (Rs 60 crore) and Good Earth Foods, its bio-nutritional subsidiary in Hyderabad where the production plant is coming up on nine acres land (Rs 15-20 crore) "These plans will call for around Rs 250 crore spends. The balance amounts would be raised from banks," stated Dr. Patell.
As part of its new initiatives, the company has launched its new corporate identity and logo that symbolizes novel solutions.
The company which has a four -fold focus in areas of bio-pharmaceuticals, bio-nutritional, bio agriculture and science and innovation has allowed it to multiply and enlarge the Intellectual Property (IP) led innovations. Currently, it has a portfolio of 140 patents and three are granted. "Each of these units will be run as independent profit centre with dedicated management teams. Avesthagen's immediate focus will be intensifying its IP through product commercialisation", informed Dr Patell.
The science and innovation group will become the discovery driver with collaborative research, product co-development executed through global partnerships. The projects are tuberculosis analysis and DNA-based diagnostic chips with BioMerieux and drug research initiatives with AstraZeneca, Sequenom, Novartis, Ranbaxy and Intas Pharmaceuticals. Besides, genome study and cancer stem cell research are the new areas of focus.
In 2005-06, the company developed multiple scientifically validated ingredients and products to promote wellness through prevention of specific degenerative conditions like diabetes, obesity, metabolic syndrome, and bone loss, each of the diseases has a large market both for treatment and prevention. Among its pipeline products: DHA and CMS are valued by Hogan & Hartson at Euro 75 million (Rs 435 crore.).
Presently employee's strength of 250 will increase to 600 over the next 18 months where 120 candidates will be for the Science and Innovation team alone.
Aluri Srinivasa Rao, director, Lifesciences ICICI Ventures said, "Avesthagen's focus in IP, management, strategic partnerships has helped it to augment its growth curve."
In terms of garnering revenues, the company has seen a 60 per cent increase in 2006 with the turnover of Rs 18 crore and profit of Rs 1.8 crore. Ending March 2007, earnings to the tune of Rs 35 crore are expected, stated J Rajagopalan, CFO, Avesthagen.