iStockLa Renon Healthcare has raised $30 million from A91 Partners, valuing the Ahmedabad-based pharma company at $500 million.
The firm, which specialises in the chronic diseases segment, was valued at $100 million in 2015 when it received Rs 100 crore ($16 million then) from Sequoia Capital.
“A91 has picked up around 5-6% stake in the company, while Sequoia will continue to hold around 12.5% stake,” Pankaj Singh, founder and chief executive of La Renon, told ET.
Singh will continue to hold the remaining stake.
La Renon will use the funds to strengthen its product portfolio and R&D capabilities.
Founded in 2008 by Singh, a domestic pharma veteran, La Renon serves kidney patients and is a strong player in the central nervous system drug manufacturing. The company said it has captured around 30% market share in the nephrology drug segment.
According to Singh, the company closed the financial year ended March 31, 2020 with gross sales of around Rs 800 crore and earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 150 crore.
Recently, one of La Renon’s solutions for neuropathic pain was awarded a patent in Canada, the European Union and other nations.
The company has expanded its footprint across Latin America, Middle East, Africa, Southeast Asia, and CIS and recently expanded its manufacturing plant, making it compliant with international accreditations in Europe, Australia, UK and Brazil.
The company is planning to expand the business into other chronic segments and in the manufacturing of critical Active Pharmaceutical Ingredients (APIs).
Last year, a cross sectional study in 6,120 subjects from 13 academic and private medical centres across the country revealed the prevalence of chronic kidney disease (CKD) at 17.2% with around 6% at CKD Stage 3 or higher.
“The opportunity in the segment is huge. Despite the presence of global peers, we have been able to carve out a niche in the early-stage drug market for these diseases and we see this market growing manifold over the years,” Singh said.
A91, was founded by former managing directors of Sequoia Capital, Abhay Pandey, VT Bharadwaj and Gautam Mago, has backed half a dozen companies since inception in 2018. Some of its portfolio companies include Sugar Cosmetics, Paperboat, Atomberg, Aye, Digit and Pushp. It is expected to launch its second India-focused fund this year.
The firm, which specialises in the chronic diseases segment, was valued at $100 million in 2015 when it received Rs 100 crore ($16 million then) from Sequoia Capital.
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Singh will continue to hold the remaining stake.
La Renon will use the funds to strengthen its product portfolio and R&D capabilities.
Founded in 2008 by Singh, a domestic pharma veteran, La Renon serves kidney patients and is a strong player in the central nervous system drug manufacturing. The company said it has captured around 30% market share in the nephrology drug segment.
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According to Singh, the company closed the financial year ended March 31, 2020 with gross sales of around Rs 800 crore and earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 150 crore.
Recently, one of La Renon’s solutions for neuropathic pain was awarded a patent in Canada, the European Union and other nations.
The company has expanded its footprint across Latin America, Middle East, Africa, Southeast Asia, and CIS and recently expanded its manufacturing plant, making it compliant with international accreditations in Europe, Australia, UK and Brazil.
The company is planning to expand the business into other chronic segments and in the manufacturing of critical Active Pharmaceutical Ingredients (APIs).
Last year, a cross sectional study in 6,120 subjects from 13 academic and private medical centres across the country revealed the prevalence of chronic kidney disease (CKD) at 17.2% with around 6% at CKD Stage 3 or higher.
“The opportunity in the segment is huge. Despite the presence of global peers, we have been able to carve out a niche in the early-stage drug market for these diseases and we see this market growing manifold over the years,” Singh said.
A91, was founded by former managing directors of Sequoia Capital, Abhay Pandey, VT Bharadwaj and Gautam Mago, has backed half a dozen companies since inception in 2018. Some of its portfolio companies include Sugar Cosmetics, Paperboat, Atomberg, Aye, Digit and Pushp. It is expected to launch its second India-focused fund this year.
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