Dubai-based Evolvence Capital has recently invested about Dh19.2 million in an Indian pharmaceutical company and plans two or three more investments in the coming months, said senior officials of the company.
"We are investing into pharmaceutical companies in India. And we are investing with a long-term perspective. India will attract a lot of pharmaceutical research as costs are significantly lower when compared to the West," CEO Khaled Al Muhairy adds.
Evolvence Capital will be investing in India through one of its Indian arm, the Evolvence India Lifestyle Fund (EILF).
The fund recently invested Dh19.2m in Chennai-based pharmaceutical company, Anjan Drugs, one of the largest Food and Drug Authority approved manufacturers of drugs for epilepsy.
Anjan specialises in medicines used for the treatment of nervous system disorders. Last year, EILSF invested $30 million (Dh110m) in Hyderabad-based advanced drug delivery mechanism company, Gland Pharma. EILSF also invested $5m in Bangalore-based cancer centre network, Health Care Global.
Hari Buggana, Managing Director of EILSF, said the company is currently performing due diligence on a couple of more companies and will make announcements in this regard in the next few months.
Evolvence Capital that plans to invest $ 100m in the pharmaceutical research in India is also looking forward to invest in medical devices, Crams (contract research and manufacturing services), diagnostics, and speciality healthcare services. The company plans two to three deals worth $20m to $25m in India this year.
"We are targeting companies that export from India to the US," said Muhairy.
Evolvence capital expects Anjan Drugs sales to "at least quadruple" this year and "we also see the Chennai-based company launching three other products. Investments in the company are being made in tranches".
Muhairy, who handled Abu Dhabi Investment Authority's (Adia) investments in technology in North America prior to launching Evolvence Capital, said he is particularly interested in high-end research projects.
The company's investment strategy in pharmaceutical companies in India would only be growth capital for minority stakes, said Buggana recently. "We did not raise this fund by positioning it as a buyout fund."