Sequoia Capital India has invested Rs 70 crore ($16 million) in Hyderabad-based biopharmaceutical company Celon Labs, which has established brands in oncology, critical care and gynaecology segments.
The funds will be used by the firm to expand its manufacturing infrastructure and strengthen its marketing activities.
Sandeep Singhal, Managing Director of Sequoia Capital will join the board of Celon Labs following the transaction.
Four-year-old Celon claims to be registering a 200% growth annually and is expected to cross a turnover of over Rs 100 Cr in FY 10-11. The company has developed and marketed a wide basket of 100+ brands in oncology, critical care & gynecology.
Celon had earlier said that it plans to develop a facility on a 15-acre campus near the ICICI Knowledge Park near Hyderabad with an investment of Rs 120 crore. It also recently signed an agreement with German generic drug major Stada to market six of its oncology products in Russia and the CIS markets. Celon had revenues of Rs 54 crore in FY 09-10.
“Sequoia Capital brings a wealth of healthcare investment experience and a blend of local knowledge and global expertise that will be invaluable to our company as we continue to pursue our strong growth trajectory,” said K.V. Ravindra, CEO of Celon Labs.
Sequoia Capital has backed contract research firms in the pharmaceutical space like GVK Biosciences and Sai Advantium Pharma.
Citadel Management Consulting was the exclusive advisor on this deal.