Indian pharmaceuticals company Laurus Labs Ltd said Friday it is raising equity investment for its biotech unit from global venture capital firm Eight Roads Ventures and its sister fund F-Prime Capital.
The drugmaker, listed on the stock exchanges since December 2016, has signed a definitive agreement for an equity investment of Rs 120 crore ($14.2 million) from Eight Roads Ventures and F-Prime Capital in Laurus Bio Pvt Ltd.
Laurus Labs will co-invest an additional Rs 40 crore in the unit, said the company disclosure.
Laurus Labs and Eight Roads Ventures have the option to invest an additional Rs 35 crore before December 2025 at the same valuation. Upon completion of the transaction, Laurus Labs, Eight Roads Ventures, and the promoters of Laurus Bio will hold stakes of 75%, 14%, and 9%, respectively, on a fully diluted basis.
The equity infusion will support Laurus Bio's expansion of fermentation-based manufacturing capabilities to meet increasing customer demand.
Laurus Bio, Eight Roads Ventures and F-Prime Capital will drive expansion of the manufacturing and R&D infrastructure to accelerate growth opportunities, company executives said in a statement. This investment will enable the company to further expand and accelerate microbial-fermentation capabilities, including faster development of new products, speed-up internal pipeline, and enhancing commercial-scale capacity, they added.
Laurus Labs entered the biotech space in 2020 by acquiring a majority stake in Bengaluru-based Richcore Lifesciences, later renamed Laurus Bio, for Rs 246.7 crore from Eight Roads and VenturEast.
Laurus Labs currently has a market capitalization of Rs 31,788 crore. Founded in 2005, the Hyderabad-based company produces active pharmaceutical ingredients (APIs) in oncology and other therapeutic segments under the Laurus brand. It also develops specialty ingredients for nutraceuticals, dietary supplements, and cosmeceutical products.