Laurus Labs arm inks pact to secure ₹120 crore investment

Drugmaker Laurus Labs subsidiary Laurus Bio (formerly Richcore Lifesciences) has signed a definitive agreement to secure ₹120 crore equity investment from Eight Roads Ventures and F-Prime Capital.

Laurus Labs, which acquired a majority stake in Richcore in November 2020 and renamed it as Laurus Bio, has agreed to co-invest an additional ₹40 crore at the same valuation.

Promoters of Laurus Bio have also been issued share warrants, exercisable up to two years, from the date of issue, at the same valuation. Laurus Labs or Eight Roads Ventures have the right to invest up to an additional amount of ₹35 crore before 2025 at the same valuation.

Upon completion of the transaction, Laurus Labs, Eight Roads Ventures and the promoters of Laurus Bio will hold 75%, 14% and 9% stake respectively on a fully diluted basis. The funds will be utilised for further expansion of fermentation-based manufacturing capabilities in order to cater to growing customer demand, Laurus Labs said in a release on Friday.

The company, promoters of Laurus Bio, Eight Roads Ventures and F-Prime Capital will drive expansion of the manufacturing and R&D infrastructure to further accelerate growth opportunities. This investment will enable the company to further expand and accelerate microbial-fermentation capabilities, including faster development of new products, speed-up internal pipeline, enhancing high quality commercial-scale capacity to partners and growing our industry position, Laurus Labs founder Satyanarayana Chava and Laurus Bio CEO Rajesh Krishnamurthy said.

“Biomanufacturing is already being utilised across a range of industries, including personal care, materials, food and nutrition and pharmaceuticals. We are looking forward to growing Laurus Bio into a global leader in this emerging segment,” Eight Roads Ventures India Managing Partner Prem Pavoor said.