Date:17/05/2005 URL: http://www.thehindubusinessline.com/2005/05/17/stories/2005051701211700.htm

Back IFC to infuse $4-million equity in biotech fund

Our Bureau

Hyderabad , May 16

THE International Finance Corporation (IFC), a private sector arm of the World Bank Group, has decided to commit $4 million in equity to APIDC Biotechnology Fund, targeting early stage companies in life sciences.

The IFC's Private Equity and Funds Director, Ms Haydee Celaya, in a statement said, "The emergence of life sciences opportunities in India is supported by a growing healthcare industry and strong human capital. While several fund managers have identified life sciences as a promising new area in the country, few have the investment and technical knowledge to address early stage opportunities. Most current investments focus on later stage, larger investments in the pharmaceutical sector. This fund is therefore a pioneer in the early stage life sciences sector in India."

The General Partner of APIDC Venture Capital, Mr Sarath Naru, said, "IFC has played a key role in mobilising investors, structuring the project and incorporating high governance standards. APIDC plans to support development of this nascent industry in India."

IFC expects several of the 20-25 companies that the Fund supports would need a partner for later stage funding.

APIDC Biotechnology Fund, a private equity fund, is formed to invest in start-up and early stage life sciences businesses. This is the first fund in India to focus exclusively on the life sciences sector supporting opportunities in health care, drug discovery, agriculture, dairy and industrial applications throughout India.

Since 1956, IFC has committed $44 billion and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC's worldwide portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.