Zephyr Peacock India, a mid-market private equity fund investing in small and medium enterprises, is putting in $5 million for a minority stake in Hyderabad-based Aizant Drug Research Solutions Pvt. Ltd (Aizant), an integrated drug development solutions provider.
While the valuation details are not disclosed, Mukul Gulati, Managing Director, Zephyr Peacock India Management told VCCircle that the transaction involves an ” influential minority stake”.
This is also the first round of institutional capital flowing into the company which has some angel investors. The money will flow into the company in two tranches of $2.5 million each, Gulati added.
Established in 2006, Aizant is engaged in the business of Contract Research Outsourcing (CRO) and provides formulation development and clinical research services to international and domestic pharmaceutical companies. The monies raised will be used to boost the company’s capex plans for new lab equipment and to ramp up marketing operations.
Sources close to the transaction told VCCircle that the company which has been in operations for five years and is profitable with EBITDA margins of 40%.
Aizant’s services are used by pharmaceutical companies for the conversion of base drug molecules into marketable and consumable forms by ensuring commercial manufacturability, adequate shelf life, drug stability and therapeutic effectiveness. The company specializes in the development of high-end formulations and has strong relationships with global pharma majors.
Aizant has over 130 employees.
Mukul Gulati, Managing Director, Zephyr Peacock India, stated, “Aizant, by the virtue of its deep expertise in high end formulation product development, is uniquely positioned among Indian CROs. The company is poised for strong growth over the next few years. We plan to work closely with Aizant’s senior management team to scale up the company’s capabilities to benefit from the tremendous growth opportunities in the emerging markets”.
Zephyr Peacock India Fund I was launched in 2006 and Zephyr Peacock India Fund II in 2008.
Aarayaa Crossborder Advisors, Ernst & Young and J Sagar Associates were the advisors to the transaction.