Gland Pharma Ltd, a market leader in advanced drug delivery mechanisms, has received an assistance to the tune of Rs 120 crore (US$30 million) after it inked a definitive agreement with Evolvence India Life Sciences Fund, a private equity fund that provides growth capital for life sciences businesses in India. The amount will be utilized by Gland Pharma to expand its US FDA approved manufacturing facility and fund research and development activities.
"The capital infusion of Rs 120 crore will help us to vertically integrate our manufacturing capabilities, fund capacity expansion and ANDA (Abbreviated New Drug Application) filings for products in the pipeline," said Dr Ravi Penmetsa, vice chairman and managing director, Gland Pharma Ltd.
Evolvence India Life Sciences Fund (Fund) follows an 'active partnership strategy' in companies it invests in and this will help Gland Pharma to pursue an aggressive international growth strategy that includes alliances and acquisitions, while driving operational improvements. The Fund is sponsored by Evolvence Capital, an alternative investments company with approximately US $1.5 billion of assets under management.
Gland Pharma is the preferred supplier to national and international pharmaceutical companies and operates the first pre-filled syringe facility in India. Heparin, Enoxaparin and Dalteparin, used to treat blood clots, Rocuronium, Vecuronium, and Atracurium used in anaesthesia are some of its largest selling products. It is also known for its manufacture of Glycosaminoglycans (GAGs) range of molecules. It is developing generic products in the oncology and anaesthetic segments. The company also provides contract manufacturing services to pharmaceutical companies selling high-end injectables.
"Indian firms have now moved up the value chain to produce branded generics, taking the lead in more sophisticated products like injectables, drug discovery and development services," said Dr Penmetsa.
India has the potential to further boost its leading role in global generics production, as well as become the offshore location of choice for multinational drug manufacturers seeking to curb the increasing costs of their manufacturing, R&D and other support services. "We aim to be a global player in the generic injectables segment. The partnership with Evolvence India Life Sciences Fund is thus a great strategic fit, and offers us immediate opportunity for sustainable growth," he added.
Rs 100 crore Gland Pharma facility currently hosts two pre-filled syringes line, two vial lines and an ampoule line. It has 5 approved ANDAs (generics) and several in the pipeline for approvals.
According to Hari Buggana, managing director, Invascent - Investment Advisor to Evolvence India Life Sciences Fund the partnership will provide Gland Pharma with a powerful mix of growth capital and business building help that will place it on a rapid growth trajectory over the next 3 -4 years. The fund will benefit from the resulting increase in Gland Pharma's value.
"With $12 billion worth of injectable products losing patent protection by 2010, including several high value oncology products, India will see the emergence of specialized players in injectables with global scale. We believe that Gland Pharma, with its niche product portfolio, a robust pipeline and specialized manufacturing capabilities in pre-filled syringes are well poised to emerge as a global scale player" stated Vishy Chibrolu, managing director, Invascent Investment Advisor to Evolvence India Life Sciences Fund.