Mauritius-based private equity fund New York Life Investment Management Jacob Ballas India Fund has acquired a “minority” stake in Mumbai-based drug maker Themis Laboratories for about Rs 90 crore.
The unlisted private company, which develops and commercially manufactures formulations on contract basis for big domestic and multinational companies operating in India, will use the fund to expand its business into the regulated American and European markets.
When contacted, company sources confirmed the development, but declined to indicate how much stake has been divested. Themis’ products account for about Rs 450 crore in the retail market, but the company’s turnover would be less than that considering that it is not directly marketing them.
Themis Labs MD Janak Shah told ET the investment would help the company’s foray into the regulated markets to be a significant player in new drug delivery systems. These are novel methods of administering existing drugs, which some times help the innovator company to extend the patent life of the product as an incentive for improving them.
“For developing new delivery systems, we have researched on several products of multinationals, which are close to their patent expiry. A few have successfully completed the proof-of-concept stage. We will now go to the innovator companies, who would take these modified drugs through further tests to the marketing stage”, Mr Shah said.
Bharat Bakhshi, a partner with Jacob Ballas Capital India that advised the Mauritius-based investor told ET that Themis’ business model has huge potential.
“We got extremely satisfactory response from Themis’ other partners and we decided to have a long-term investment in the company”, said Mr Bakhshi.
Themis has about seven such new drug delivery systems ready now. Discussions have already started with some companies, Mr Shah said. The proof-of concept stage demonstrates the promise of the new delivery system, and once the company signs a contract with the innovator, the latter would conduct further clinical tests required. Inventors of the original drug would be interested as these may help them extend their patent protection on the drug.
Themis would also commercially manufacture for them. It has recently transferred its technology to Aventis Pharma (a member of the Sanofi-Aventis group) for a combination of two best-selling diabetes drugs from Sanofi-Aventis glibenclamide (Daonil) and glimepiride (Amaryl). The combination makes it more convenient for patience to comply with the treatment regime.
Source: Economic Times