Hyderabad, lndia, september 25,2017 – Vivimed Labs Limited (“Vivimed” or the company), a Pharmaceuticals and Specialty Chemicals company, has signed definitive agreements to facilitate an investment of USD 42.5mn by OrbiMed Asia into the Company’s subsidiary, Vivimed Labs Mascarene Ltd, the holding entity of the company’s Apt business, uQUlFA.
The proceeds of this fund raise will be utilised by the Company primarily for,
- Debt reduction and optimisation of capital structure at the parent entity level
- Investment in the API business for capaclty augmentation and organic growth
UQUIFA contributes approximately 60% of the company’s total consolidated revenues and a higher proportion of the reported EBITDA. The business, since its acqulsition by the Company, in 2011 has seen meaningful improvement in its profitability and product pipeline. The growth in the business has been driven by a ramp up in CDMO business, better product mix and higher market shares in the generics portfolio. The segment EBITDA margins have expanded to be in the range of !7 -Lg%, from high single digit Ievels at the time of acquisition.
UQUIFA will pursue strategies aimed at delivering higher growth and further improvements In margin profile, in the coming years.
Commenting on the development, Mr, Santosh Varalwar, Managing Director said:
“Vivimed welcomes the investment by orbiMed in our business as we prepare ourselves to embark on the next lap of growth for our API franchise. UQUIFA, today, is a significant part of vivimed,s presence in the pharmaceuticals business and is poised to grow well ahead of the industry on the back of our strategic initiatives and investments committed. Even as we have seen a scale up in the sales and profitability metrics from this part of the business in the recent past, we are confident that high value opportunities in our targeted segments of the market will drive the future. Mr Saurabh SG, Executive Director, added, the proceeds of this investment will be utilised to drive , business growth and, increase the Company’s profitability by optimising the capital structure turther. At UQUIFA, we have a well-diversified portfolio across the generic segment and, our presence in the niche eDMo space where we work with the innovator companies.
We would like to use this platform to build a high-value franchise with access to growth opportunities across both the segments, with a constant focus on compliance and quality. our leadership teams are excited as we look to grow sales and profitability across all our Business Verticals, which will be a source of significant shareholder value, as we move ahead in our chosen markets.
UQUIFA, has three US FDA inspected manufacturing sites across Spain and Mexico and, caters to the Generic Apl and cDMo API Segments of the global pharmaceutical market. lt has customer relationships with leading innovator and generic formulation companies and, has been a trusted franchise across regulated markets, for 80 years of its existence. Gilead Lifesciences, GSK, Mylan, Esteve Quimica, Apotex, Medinsa, and Actavis are some of the key customers of UQUIFA’ For further information on UQUIFA, visit www uquifa.com
About Vivimed Labs:
Vivimed is a pharmaceuticals and Specialty Chemicals company headquartered in Hyderabad, India. lt has manufacturing footprint across India, Europe and North America across its line of businesses and employs close to 20OO personnel across the world. Vivimed reported sales of about INR 15bn for the financial vear ended March 31, 2017. For further information on Viv,imed, visit www.vivimedlabs.com
OrbiMed is a leading healthcare investment firm, with over S14 billion in assets under management. OrbiMed invests globally across the healthcare industry, from start-ups to large MNCs, utilizing a range of private equity funds, public equity funds, and royalty/credit funds. OrbiMed maintains offices in New York City, San Francisco, Shanghai, Mumbai and Herzliya.
For further information please contact
Vivimed Labs Limited
CIN No: 10241-1KA1988P1C009465
Email: sunil.a ra b@vivimedla bs.com
Email : email@example.com
Strategic Growth Advisors Pvt Ltd.
CIN No: U 74140M H2010PTC204285
Tel No: +91 79770 9041″6
Email: sama ntha.fra ncis @ sgapl. net
Tel No: +91 98330 06032
This release contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vivimed’s future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties deallng with us, leglslative developments, and other key factors that could affect our business and financial performance. Vivimed undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.