Deal focus: Eywa brings experienced edge to generics

Eight Roads Ventures was already a player in India's healthcare space - the firm had invested in home medical care service Nightingales in 2015 and was on the lookout for more opportunities in technological disruption of medical services. The other side of the country's medical market was the generic drugs space, where Eight Roads already had an existing investment in Laurus Labs.

The global generic drugs industry represents a booming business for Indian pharmaceutical firms of all sizes. In the US alone, India-made drugs accounted for 30% of the $70 billion generics market by volume for the year ended March 2016, and 10% by value. US Food and Drug Administration (US FDA) approvals for generic drug launches by Indian companies grew by 84% over the same period.

Eywa Pharma seemed the perfect way to expand Eight Roads' exposure: the Singapore-based company had an R&D facility based in India. Moreover, the founders offered a mix of entrepreneurial and corporate experience that is becoming increasingly visible in the country. Both previously worked at Mylan Pharmaceuticals; one had founded a start-up that was acquired by Mylan and the other headed global business development at the company.

"Two years ago we would not have found a team like this to back. But we're seeing more professionals now wanting to become entrepreneurs," says Dr. Prem Pavoor, a partner at Eight Roads. "They know these markets, they've built companies in these markets, and that gives us a lot of comfort, knowing that they've been there and done it before."

Now Eywa is turning toward the global generic pharmaceuticals, armed with a fresh $30 million from Eight Roads, F-Prime Capital and other investors. The GP believes the founders' combination of global pharmaceutical industry perspective and entrepreneurial can help deliver success. With a portfolio of 15 generic medications under active development, Eywa stands on the strength of its products, but it needs more than that to survive.

"If you want to win today in the pharmaceutical industry, you need to have product selection expertise - what are the right therapeutic areas, where do product gaps exist in the market, what's your competitive advantage," says Pavoor. "You also need experience in developing, manufacturing and launching a pharmaceutical product."

Though large pharmaceutical companies like Mylan offer a considerable challenge for start-ups to overcome their dominance, Eight Roads and its fellow investors feel there is considerable opportunity as well. Smaller companies can find cost savings and efficiencies that are very hard for giants with established business practices to achieve.

"The large companies are good at many of these areas, but given how global this landscape is now, strong entrepreneurial teams are uniquely poised to identify and leverage best of breed providers for each aspect," Pavoor explains.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• South Asia
• Healthcare
• Early-stage
• Singapore
• India
• Pharmaceuticals
• Eight Roads