Growth-focused private equity fund Tata Capital Healthcare Fund II has invested $20 million (around Rs 167 crore) Hyderabad-based specialty pharma manufacturer Orbicular Pharmaceuticals Technologies Pvt. Ltd, for an undisclosed equity stake.
This bet is likely to be Tata Capital Healthcare Fund’s eight investment from its second fund, as per its website.
According to a company statement, Orbicular will use this capital to accelerate the development of its product pipeline.
To be sure, Orbicular develops complex generics for the global pharma market across various niche dosage forms and delivery technologies. They make all forms of injectable formulations, injector device-based peptides, ophthalmic solutions, amongst others.
Ambit acted as the financial adviser to the transaction.
Speaking on the capital raise, MS Mohan, managing director, Orbicular said, “Having positioned Orbicular as a differentiated specialty pharmaceutical company in the complex generics space, the investment will further strengthen our global partnerships. We will continue to drive differentiation, pursue advance healthcare solutions, and make a positive impact on the lives of millions across the globe.”
The pharmaceuticals sector in India has seen some traction over the last year with both interest shown by both homegrown and international investors. Some of these are the recent bet where Abu Dhabi’s sovereign wealth fund the Abu Dhabi Investment Authority (ADIA) picked up a stake in an Indian pharma player.
In another instance, domestic investor ChrysCapital signed off on a multi-year old pharma bet with stellar returns.
As for Tata Capital Healthcare Fund, it has raised over $200 million across two outings so far with a collective investment in 18 companies and six exits.
Some of the bets struck via the TCHF II are Linux Labs, Atulya Healthcare, Deeptek Inc, Anderson Diagnostic Services, Mumbai Oncocare Center and Sakar Healthcare.
It invested $10 million in dialysis chain Apex Kidney Care in October 2023 from the second vehicle.
“Orbicular is at the forefront of R&D leadership in the field of complex generics. Under MS Mohan, Orbicular has developed a strong product pipeline for the regulated markets. This investment reinforces our fund’s core philosophy of identifying the big shifts in the industry and being a ‘capital plus’ partner to our companies,” said Visalakshi Chandramouli, managing partner at Tata Capital Healthcare Fund.