Brinton Pharmaceuticals raises $4 million from Tata Capital’s healthcare fund
Mumbai: Brinton Pharmaceuticals Ltd has raised $4 million (about Rs26 crore) from Tata Capital’s healthcare-focused fund, a top executive of the drug maker said.
The investment will support Pune-based Brinton’s entry into newer areas such as paediatrics and gynaecology, said Rahul Darda, managing director of the company he founded in 2013.
This is the first round of institutional capital raised by Brinton, which sells products focused on therapeutic area of dermatology. Vamesh Chovatia, partner at Tata Capital’s healthcare fund, will join the Brinton Pharmaceuticals board, Darda said.
“Dermatology and cosmeceuticals are among the fastest growing therapeutic segments in the Indian pharmaceutical market, growing at an annual CAGR of 15%,” Darda said.
Brinton, which has a 400-strong workforce, sells 45 products in the dermatology segment in areas such as anti-acne, anti-fungal, sunscreen, hair care, moisturizer and personal hygiene. The company plans to launch its paediatric product range in July this year, starting with 17 products, Darda said, adding it would hire 200 medical representatives for the new segment.
He said the company will enter the gynaecology segment in January 2018.
The funding from the Tata Capital healthcare fund will also be used to expand international operations.
“We are expanding to 32 countries from our current presence of eight countries. The geographies we are focusing on include West and East Africa as well as Southeast Asia,” said Darda. In South Asia, Brinton has a presence in Sri Lanka, Nepal and Bangladesh.
Currently the company earns almost 75% of its revenue from the Indian market, with the rest coming from its overseas business. Darda expects the same ratio to continue given the relatively larger size of the Indian market. Brinton is targeting revenue of around Rs90 crore in the current financial year, Darda said.
“We have a roadmap in place to cross Rs300 crore in the dermatology segment by financial year 2020-21,” said Vijey Christopher, senior vice president at Brinton.
Over time, the company plans to enter other therapeutic areas, including orthopaedics in 2019-20, said Darda.
Brinton has a manufacturing tie-up with eight third-party manufacturers. It has registered offices in the US, UK and Ghana.
The pharmaceutical and healthcare sector has been witnessing strong inflow of capital over the last two years with the sector recording PE investments worth $1.1 billion (across 60 deals) in 2016 and $1.8 billion (across 54 deals), according to Bain & Co.’s India PE Report 2017.
According to a survey of PE funds by Bain & Co., pharma and healthcare sector is expected to see the highest investment activity in the year 2017.