Eight Roads invests $31m in Indian pharma player

Caplin Point, founded in 1990, produces high quality, affordable generic pharmaceutical formulations intended for emerging markets, particularly in Latin America and Asia. It has one manufacturing facility and two R&D centers in India, capable of producing both edibles and injectables, as well as other forms of medicine.

The new capital will be used for Caplin Point’s subsidiary Caplin Steriles, which manufactures injectable products for developed markets such as the US and Europe. The subsidiary has a team of 550, and its dedicated research and manufacturing facility has been approved by the US Food and Drug Administration and European regulatory authorities.

“We are at a stage in our regulated markets journey where we believe that the business is now well-positioned to evolve and thrive as a separate entity,” said CC Paarthipan, Caplin Point’s founder and chairman, in a statement. “We are excited to extend our journey with Eight Roads Ventures and F-Prime Capital as investment and knowledge partners, given their excellent track record worldwide and particularly in healthcare.”

According to Caplin Point’s most recent annual report, sales of generic pharmaceutical products worldwide are expected to reach $505 billion by 2022 from $245 billion in 2017, mainly from market expansion in emerging countries and aging populations in developed markets. Generics are also growing their share of the overall pharmaceuticals market, thanks to concerns about healthcare costs.

Caplin Point has benefited from this growth, with revenue rising from INR4.1 billion for the year ended March 2017 to INR5.3 billion the following year. Over the same period, net profit grew from INR955 million to INR1.5 billion.

Eight Roads, formerly known as Fidelity Growth Partners, is active across several markets in Asia, pursuing early-stage and growth capital investments in the consumer, financial, and enterprise technology segments. Its investments in India’s pharmaceutical sector include online pharmacy PharmEasy and generic drug maker Eywa Pharma.

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• Topics
• South Asia
• Healthcare
• Expansion
• India
• Eight Roads
• Growth capital
• Pharmaceuticals