Tata Capital Healthcare Fund II Invests $20 Mn in Orbicular Pharmaceutical Technologies

The investment, in exchange for an undisclosed equity stake, aims to speed up the development of Orbicular's product pipeline.

Tata Capital Healthcare Fund II (TCHF II), a healthcare-focused private equity fund, has invested approximately $20 million in Orbicular Pharmaceutical Technologies, a Hyderabad-based company that develops complex generics for global markets.

The investment, in exchange for an undisclosed equity stake, aims to speed up the development of Orbicular's product pipeline. 

The specialty generics industry, valued at over $60 billion, is growing due to increased demand for affordable alternatives to expensive branded medications. 

Reportedly, Orbicular has a strong pipeline of niche products, making it an appealing partner for global generic companies targeting regulated markets.

These products will be manufactured at Strides' Chestnut Ridge facility in New York, which has comprehensive capabilities for nasal spray manufacturing, including controlled substances.

Visalakshi Chandramouli, managing partner at Tata Capital Healthcare Fund, said, "We are thrilled to partner with Orbicular, which leads in R&D for complex generics. Under Dr M S Mohan’s leadership, Orbicular has built a strong pipeline for regulated markets. This investment aligns with our fund’s philosophy of identifying significant industry shifts and being a 'capital plus' partner."

During this transaction, Ambit acted as the exclusive financial advisor to Orbicular and its shareholders. Vikas Khattar, MD, co-head of investment banking and head of Esprays, with a combined global market size exceeding $400 million, according to IQVIA market data. 

Commenting on the same, Dr M Mohan, MD of Orbicular, said, "Today marks a transformative milestone for us. Starting as a bootstrapped company and now backed by Tata Capital Healthcare Fund, we are positioned as a differentiated specialty pharmaceutical company in the complex generics space. This investment will enhance our global partnerships."

Strategic Partnership with Strides Pharma Science

Earlier, Orbicular Pharmaceutical Technologies signed a pact with Strides Pharma Science to develop, manufacture, and commercialize nasal sprays for global markets. 

Under this partnership, Orbicular leveraged its drug delivery and formulation expertise, while Strides will handle commercialization across markets, including the US and Europe.

The partnership sought to focus on four nasal sprays, with a combined global market size exceeding $400 million, according to IQVIA market data. 

These products will be manufactured at Strides' Chestnut Ridge facility in New York, which has comprehensive capabilities for nasal spray manufacturing, including controlled substances.

Strides acquired the Chestnut Ridge facility in October 2021 from Endo Inc.