Bangalore-based life sciences company AVESTHAGEN has revived plans for an IPO and the company will raise approximately Rs 600-700 crores from the domestic and international markets.
The funding will be used to commercialize 40 products which are in various stages of development, to market. Having initially announced the IPO last year, AVESTHAGEN had to postpone the plans after markets fell due to global meltdown.
According to Dr. Villoo Morawala-Patell, Founder and CMD, AVESTHAGEN, “The IPO is slated to coincide with the time that our biosimilars are ready to hit the market place. From an investment perspective I believe mid 2010 will see a global turnaround and a good business environment such that all our stakeholders will benefit from investing in the company.”
The Company, which currently holds 560 patents, will be valued based on its patent and product portfolios. AVESTHAGEN, which is expected to touch a turnover of Rs 100 crores this fiscal, is yet to decide on the bankers and would like to hold on to the promoter stake, which is currently at 32% while PE players hold up to 28%. PE investors include ICICI Ventures, Fidelity and New York Life Investment Management India Fund.
Each of Avesthagen’s four strategic business units are expected to run as independent profit centres with dedicated management teams. Avesthagen Ltd has many products in the pipeline that need to be monetized and brought to the consumer. The company is poised for rapid growth post-funding, Recently, the company cleared one mammalian biosimilar monoclonal antibody product by the regulatory agency in India for clinical trials, and three other biopharma products have entered pre-clinicals.