Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Everstone buys 70% stake in drug delivery tech firm Rubicon Research
BackBack

Everstone buys 70% stake in drug delivery tech firm Rubicon Research

This will be fourth investment from Everstone's latest PE fund, Everstone Capital Partners III, which raised $730 million last year

Sameer Sain, co-founder and managing partner of Everstone Group, says Rubicon has an excellent record of providing cutting-edge solutions to the healthcare and pharmaceutical industry. Photo: Abhijit Bhatlekar/MintPremium
Sameer Sain, co-founder and managing partner of Everstone Group, says Rubicon has an excellent record of providing cutting-edge solutions to the healthcare and pharmaceutical industry. Photo: Abhijit Bhatlekar/Mint

New Delhi: India-focused private equity firm Everstone Group has acquired a 70% equity stake in Mumbai-based drug delivery technology firm Rubicon Research Pvt. Ltd for Rs220 crore (about $33 million), said the company.

Along with a $20 million investment directly into the business, the deal includes acquisition of stakes from Kotal Private Equity, which had invested an undisclosed amount in the company in August 2008, and a private investor.

Mint was the first to report that Rubicon Research is raising up to Rs240 crore from home-grown PE firm Everstone Capital and a clutch of high networth individuals (HNI) in a deal that will enable a complete exit to its investor Kotak PE.

This will be fourth investment from Everstone’s latest PE fund (Everstone Capital Partners III), which raised $730 million last year. The investment was led by Deep Mishra, an Everstone managing director who focuses on consumer and pharmaceutical investments for the group. Mishra will be joining the board of directors of Rubicon.

Rubicon is an outsourcing partner to the global pharmaceutical industry and its proprietary technologies provide solutions for bioavailability enhancement, gastric retention, taste masking, and customising the release profiles of drugs. The company also offers life-cycle management services for pharmaceutical products.

The company has also refocused its business on creating its own Abbreviated New Drug Applications (ANDAs)/New Drug Applications (NDAs) for the global market, it said in the statement.

“Rubicon has an excellent record of providing cutting-edge solutions to the healthcare and pharmaceutical industry," said Sameer Sain, co-founder and managing partner of Everstone Group.

“We welcome this partnership with Everstone and believe, with their deep managerial and operational expertise, capital infusion and global connectivity, we will be able to significantly accelerate our growth," Rubicon founder and chief executive officer Dr Pratibha Pilgaonkar said.

Rubicon Research focuses on regulated markets and more than 85% of its revenue is generated from export markets such as the US and Europe. The company claims to have filed around 53 patents as of 31 March 2015. It is focusing on developing products that will enable it to increase its presence in regulated markets of the US and Europe.

ALSO READ | Rubicon Research in talks to raise Rs240 crore from Everstone, HNIs

It currently operates a facility at Ambernath near Mumbai, which was set up in 2010. The plant is compliant with the US Food and Drug Administration and EU specifications, according to the company’s website.

According to data from the company’s filings with the registrar of companies (RoC), Rubicon reported revenue of Rs39.53 crore in 2014-15, compared to Rs41.7 crore in the previous year. In 2014-15, the company reported a profit of Rs.2.66 crore, against Rs.4.49 crore the previous year. The latest financial numbers of the company were not available with the RoC.

The global contract research and development market, in terms of value, was approximately $28.8 billion in size in 2014 and is expected to reach $44.6 billion in 2018, reflecting a growth rate of 11.6%, according to a February 2015 report by Frost & Sullivan.

ALSO READ | The building of Everstone Capital

Everstone Capital, co-founded by Sameer Sain and Atul Kapur, former Goldman Sachs executives, has been an active PE investor in the country. With assets under management of $3.3 billion, Everstone has around 200 people working across five offices, including in Mumbai, Delhi, Bengaluru and Mauritius.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 24 Oct 2016, 01:37 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App