Private equity firm JM Financial India Fund has invested Rs 35.4 crore in Mumbai based pharmaceutical company DiagnoSearch Life Sciences Pvt Ltd. The company will use this amount for both organic and inorganic expansion through acquisitions in India and the international markets.
Anant Kulkarni, Executive Director, JM Financial Investment Managers stated that the investment will help DiagnoSearch to expand its operations through strategic alliances and tie-ups in the global arena, as well as strengthen its operating presence in India.
He further said that the Indian clinical trial industry is also poised for huge growth with India fast emerging as the preferred destination for contract research and clinical trials outsourcing activity and JM Financial sees huge opportunity with this investment.
DiagnoSearch is a clinical research firm which offers service including clinical operations, data management & bio-statistics and pharmaco-vigilance services.
While JM Financial India Fund is a $225 million India focused private equity fund backed by JM Financial Ltd and US based Old Lane Partners LP. It focuses growth capital investments.
Orion Equity Advisors were the advisors for the company on this transaction.
Some major private equity fundings in clinical research space include Aureos India’s Rs 18.5 crore investment in Accutest Research Labs in 2006 and Sequoia Capital India’s Rs 100 crore investment in Hyderabad based GVK Biosciences Pvt Ltd in November 2007. Sequoia Capital has also made investment of around Rs 50 crore in Sai Advantium for 18% stake in the company.
Baring Private Equity invested $10 million in Sphaera Pharma, an integrated drug discovery and development company, in November 2008. Mumbai based clinical research organisation Siro Clinpharm has raised funding from 3i Group and Kotak Private Equity.