The $150 million Evolvence India Life Sciences Fund has been launched. It has made its maiden investment of Rs 22.5 crore( $5million) in Health Care Global Enterprises (HCGE), a Bangalore-based cancer care and research centre.
Evolvence expects to complete its next investment in a south Indian generics company for which due diligence is on and the announcement may come in the next six weeks, said Hari Buggana, managing director, Invascent which is adviser to the India fund.
The Mauritius-based Evolvence India fund is looking at similar investments in 7 to 10 companies. A typical Evolvence India deal size would be in the range of Rs 50 crore to Rs 800 crore. "In the last one year, we have identified around 300 life sciences companies and are looking at 25 companies to invest in," Buggana said.
These companies would be in the areas of generics, fermentation, contract research, medical devices, biopharmaceuticals and vaccines, with a turnover Rs 45 crore to Rs 800 crore.
Buggana said these companies would need a partner to take them forward in the areas of IPR, handle aggressive moves by the multinational companies in the market, survive the drug price control order (DPCO) and burgeoning issue of getting the right human resources.
The Evolvence India LS Fund set up in April 2006 is promoted by the Dubai-based Evolvence Capital, which has assets over $ 1billion.
"The India fund intends to build a portfolio of businesses in life sciences sector with special capabilities that derive significant competitive advantage, like lowest cost process for active pharma ingredients manufacture, new drug delivery systems, advanced drug discovery platform and contract research/manufacture. Funds will be provided for development of generic versions of drugs facing patient expiry, acquisition, upgrade existing infrastructure. We are a partner for the companies in all these areas," stated Buggana.
Once the life sciences fund consolidates, the plan is to introduce II and III-tier funds for the healthcare sector, such as to improve the infrastructure. The funding scene is positive as the country is looking for growth in all areas of life sciences.
According to him there are several visible investment trends. First one is the need for funds in the generic business space where Indian pharma companies are gearing up to capture US requirements. Second is the R&D off shoring business where India is the preferred destination for drug development for its cost competitive advantages and availability of scientific pool for global majors. The third is the growing awareness among middle class Indians in seeking medical assistance for treatment of lifestyle disorders and chronic diseases which is providing a fillip to the pharma and healthcare sector.
In India today, there are a handful of leading fund providers including Burril & Co, MPM Capital, a Reliance Life Sciences' partnership with MPM Capital, a US-based global investment management firm, Kotak Mahindra, to name a few. But Evolvence Fund is different in the sense that it does not support start-ups but only well established profit making companies, informed Buggana.