At $500 million valuations, La Renon is raising $30 million from A91 Partners
A91 Partners raised $30 million from La Renon Healthcare, valuing the pharmaceutical business based in Ahmedabad at $500 million.
The company, which specializes in the chronic diseases market, was valued at $100 million in 2015 when Sequoia Capital earned Rs 100 crore ($16 million then).
“A91 has taken up about 5-6 percent of the company’s stake, while Sequoia will continue to hold about 12.5 percent of the stake,” Pankaj Singh, La Renon’s founder and chief executive, told ET.
The remaining stake will continue to be owned by Singh.
To improve its product portfolio and R&D capabilities, La Renon will use the funds.
Established in 2008 by Singh, a veteran of domestic pharmaceuticals, La Renon serves kidney patients and is a dominant player in the development of drugs for the central nervous system. The company said that in the nephrology drug business, it has gained about 30 percent market share.
According to Singh, with gross revenue of around Rs 800 crore and earnings before interest, tax, depreciation, and amortization (Ebitda) of Rs 150 crore, the company closed the financial year ended March 31, 2020.
Recently, in Canada, the European Union, and other countries, one of La Renon’s solutions for neuropathic pain has been awarded a patent.
The company has extended its presence in Latin America, the Middle East, Africa, Southeast Asia, and the CIS and has recently expanded its manufacturing plant to comply with international accreditations in Europe, Australia, the United Kingdom, and Brazil.
The business plans to extend the company into other chronic segments and to manufacture essential active pharmaceutical ingredients (APIs).