ZNZ Pharma investing Rs 559 crore in Celon Labs
About Rs 200 crore of this to go into a new unit in Telangana for oncology and critical care products
Hyderabad: London-based biopharmaceutical platform, ZNZ Pharma has acquired majority (74 per cent) stake in Celon Laboratories, a Hyderabad-based specialty generics company. ZNZ is planning to invest in Celon’s new oral and injectable manufacturing unit for both critical care and oncology. The cumulative investment will be around Rs 559 crore.
Celon Laboratories managing director M Nagesh Kumar told Telangana Today, “Celon Labs is currently valued at Rs 485 crore and ZNZ is buying 74 per cent of the stake now (which translates into Rs 358.9 crore). We are planning to set up a new unit in Telangana. We may look at a location around Shameerpet or in the upcoming Hyderabad Pharma City. We will finalise the location in the next few weeks.”
ZNZ will pump in additional Rs 200 crore into Celon for the new manufacturing unit. The facility will make oral and injectables in oncology and injectables in the critical care. The company would need 10 acres for the proposed facility and may commission it by mid-2022. Celon currently has two facilities at ALEAP industrial area in Pragathi Nagar near Kukatpally, Hyderabad.
“The primary investment by our new shareholders will help Celon expand its capabilities and capacities to match market opportunities in both therapeutic segments on a much larger global scale catering to markets such as Mexico, Brazil, Argentina and Algeria. We currently cater to smaller markets in Africa, Middle East, Russia and Asia Pacific,” added Kumar.
ZNZ is backed by CDC Group, the UK’s publicly-owned impact investor, Development Partners International (DPI) through its ADP III fund and the European Bank for Reconstruction and Development (EBRD). The London-based company is co-founded by Hocine Sidi-Said, CEO and Alhadi Alwazir, chief strategy officer, both of whom have been inducted to the Board of Directors of Celon Labs.
“We have a large portfolio in oncology and critical care products driven by our in-house R&D at Pragathi Nagar. We develop about 10 products every year. The current R&D facility will take care of the research backing needed for the proposed manufacturing unit. The ZNZ platform is also looking to pool the strengths and capabilities of multiple acquired assets across the world,” Kumar added.
Celon Laboratories was founded in 2007 by Vimal Kumar Kavuru and Vijay Kumar Vasireddy, which today employs 520 people and sells its products in India and over 45 countries across emerging markets. Kumar said that the entire manpower will be retained even after the majority stake sale.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
