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PE player Sequoia invests Rs 100cr in GVK Bio
Posted by Srini Uppala | November 26, 2007 | 642 views
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Loading ...Global private equity player Sequoia Capital has invested Rs 100 crore in Hyderabad-based contract research organisation GVK Biosciences. The investment comes close on the heels of Sequoia picking up an 18% stake in Hyderabad-based CRO SAI Advantium, signaling the PE major’s interest in the contract research space.
GVK Biosciences plans to use the money to fund acquisitions in the CRO space and also add to its existing capacities. “We are looking at targets both in India and abroad for expanding our work. Low-cost destinations are not a priority for us because we are open to making acquisitions even in the US and Europe,” GVK Bio president Manni Kantipudi told ET.
According to him, the acquisitions would be made to compliment the company’s existing activities in the pre-clinical and clinical research areas.
Part of the funds raised will also be used to finance the company’s new campus being built at Mallapuram near Hyderabad at a cost of Rs 60 crore. The investment would be made in a phased manner. The plan is to expand capacities in chemistry and informatics on the drug discovery front.
The company clocked a turnover of Rs 200 crore in March 2007 and is targeting doubling its capacity over the next three years. “Currently, we have around 1,300 employees. With our expansion plans on course, our employee strength will double by 2010”, he said.
Recently GVK Bio signed a $45-50 million agreement offering contract research services to Wyeth Pharmaceuticals. GVK, has built a dedicated facility for Wyeth to service the five year contract. In addition, the company is a collaborative and contract research partner for a number of firms in the US and Europe.
GVK BIO started operations in 2001 at Hyderabad. It provides an integrated service platform ranging from informatics,
medicinal chemistry and biology services. It has facilities in Hyderabad, Chennai and Gurgaon.
Sequoia Capital India has invested in over 30 companies in India over the last 6 years. It manages four funds totaling $1.1 billion focused on investments in India across sectors. Some of its investments include Applabs, Bharti Telesoft, Cafe Coffee Day, First source, Indiatimes, Indecomm, marketRx, Paras Pharmaceuticals and SKS Microfinance.
SOURCES:
Economic Times
Topics: Health, Business News |
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