Pharma Company La Renon acquires 51% stake in Enaltec Labs
- ByTejika Bajaj | January 21, 2022
Pharmaceutical company La Renon which is backed by Sequoia Capital has recently announced the acquisition of a majority stake of 51% in Enaltec Labs. This deal values the latter at a post money valuation of INR 180- 200 crore.
“This acquisition will help in meaningfully building and growing our core business and also allow us to backward integrate and develop for the first time in India APIs, and to launch first of its kind formulations with DCGI approval,” La Renon’s Chairman Pankaj Singh said.
With this acquisition, La Renon has officially marked its entry into development, manufacturing and marketing niche, specialised and complex active pharma ingredients for India and overseas markets. The recent partnership would allow the company to become a fully integrated pharmaceutical company and utilise the synergies to expand in the Indian market. Additionally, La Renon will gain access to the innovative and fast-growing API space.
“This is a structured deal based on Enaltec’s performance between October 2021 and September 2022, and after achieving about 15-18% Ebitda—the conversion of stake will be ascertained,” said La Renon’s Chief Financial Officer, Amit Jain. “La Renon will end up with a higher stake than 51% if Enaltec fails to achieve those business targets. This is entirely the primary capital which is going into Enaltec.”
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