Canbank Venture Capital Fund (CVCFL) Picks Up Stake in Bioneeds India Pvt. Ltd., (Bioneeds) Bengaluru
Bioneeds is a OECD GLP certified and AAALAC accredited Pre-Clinical Contract Research Organization with 1,10,000 SFT of world class Vivarium and supporting laboratories at Bengaluru.
- (1888PressRelease) December 27, 2015 - Mumbai, India - Canbank Venture Capital Fund Ltd (CVCFL) through its Fifth Fund viz., Emerging India Growth Fund has invested Rs.250 Million by way equity shares and convertibles for a minority stake in M/s Bioneeds India Private Limited (Bioneeds).
Total expansion program will lead to addition of 120,000 Sq ft of facility, of which 55,000 Sq Ft will be added immediately. This will result in total 230000 Sq ft facility consisting of Biopharma discovery labs (Molecular Biology, Cell Culture, Upstream and Downstream, DPD, Bioanalytical and QC labs). NEC discovery labs (Chemistry, DMPK, Safety Pharmacology, Bioanalytical and Canine Facility) and also additional manpower of 75 scientists. With this expansion, Bioneeds will be offering full range of Discovery, Development and Regulatory services to Pharma, Biotech, Medical Device and Agrochemical companies.
Mr S Thiruvadi, Managing Director, Canbank Venture Capital Fund Ltd. (CVCFL) said, "Globally, Indian Scientific Community is highly respected for their ingenuity, professionalism and contribution they have done in the field of new Drug Discovery. Also, they have created positive impact in other industries in which Bioneeds offer their services. High-quality scientific manpower coupled with cost advantage of India, is a compelling business reason for many international companies to outsource their research work in India. Bioneeds has demonstrated this and is very well positioned to capture the growth opportunity with their well-qualified scientific manpower. The EBITDA and PAT margins from Bioneeds are good and CVCFL anticipates that Bioneeds with their strong customer base and progressive professional management will achieve high growth in the revenues and profitability and be able to offer significant returns through dividends and capital appreciation on exit. CVCFL from its fund EIGF has been assisting unlisted mid stage/late stage companies in the manufacturing and services sector with good growth potential and require funding"
According to independent reports, global R&D expenditure for the pharmaceutical industry in 2014 was about US$ 139 billion with significant potential for outsourcing. Penetration of outsourcing to independent CROs is estimated to be at CAGR of about 12.5%. Parameters like high quality Scientific manpower and cost advantage places India in a comfortable position to capture this business. World class facility and well established processes are additional requirements, which Bioneeds has rightly identified.
States Dr. S.N. Vinaya Babu, MD, Bioneeds, "we are a first-generation business built primarily on high quality work by our well qualified scientific staff. Our high-growth till date has been funded by internal accruals and borrowings. We have been actively looking for funds to strengthen our balance sheet and also expand our services. The funds from CVCFL shall be deployed to build additional Vivarium and Discovery Labs with state-of-the-art equipments. This will help us to broaden our service offerings and deepen our relationship with 250+ active customers we currently service. We aim to be counted among the best Global CROs offering complete range of services. We aim to become INR 1,000 million Company in next 3 years."
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