Bangalore: A leading pharmaceutical research, marketing and manufacturing company, La Renon Healthcare Pvt. Ltd. raises Rs.100 crore in series A round of funding from Sequoia Capital. The company will deploy the fund to improve its Research & Development capabilities and to expand into new segments of chronic diseases such as Gastroenterology and Respiratory.
Incorporated in 2008 by Pankaj Singh, Ahmedabad based La Renon is DSIR (Department of Scientific and Industrial Research) approved R&D centre which aims to develop effective formulations and innovative drug delivery systems that serve patients in the chronic diseases segment. Acknowledged as the first company in Nephrology to foray into the domain with a focus on early stage Chronic Kidney Disease (CKD) Patients, the firm provides world-class quality pharmaceutical products and services for various critical illnesses and diseases.
Within a short span of time, La Renon also has a strong presence in other chronic segments like Critical Care, Neurological Disorders and Urology. On the other hand, the company estimated that, at least 6 crore individuals in India are suspected to be suffering from some form of Kidney Disease, and of that only 1 percent (6-7 lakh) are diagnosed or undertake some form of renal therapy.
Speaking about the funding, Pankaj Singh, Founder, Chairman & CEO, La Renon says, “Chronic diseases are fast becoming a major health risk for a majority of Indians, largely due to factors relating to the changing modern lifestyle. At La Renon, it is our aim to develop and market new and innovative solutions to address these chronic health issues. We view this partnership with Sequoia as an endorsement of the strength and sustainability of our branded formulations business and validation of our differentiated growth strategy across various therapeutic segments.”
Further speaking about the funding, Pankaj noted, “We will look forward to Sequoia's value addition in nurturing our Passion to build a World class pharmaceutical company providing high quality integrated care to solve chronic diseases for a broader population in India and affordably addressing the underserved medicinal needs of the galloping patient population.”
VT Bharadwaj, Managing Director, Sequoia Capital India Advisors, says, “Health and technology are converging to become ubiquitous in patients' and doctors' lives. We believe La Renon with innovative solutions and deep understanding of chronic diseases management has the potential to be a game-changer in the chronic disease care space in India. We look forward to working closely with them to propel the company to the next phase of growth.”
Vijay Datt, Founder & CEO, Citadel Management Consulting says, “Sequoia’s investment into La Renon reaffirms the growth potential of high quality branded formulations companies in India. The investment will help La Renon in adding several new therapeutic segments to its existing brand portfolio and invest into its novel platform technologies.”
The Indian healthcare industry, particularly the healthcare delivery segment, has been growing at a rapid pace over the last few years. Pegged at approximately $60 billion in 2014, the sector is projected to grow at CAGR of 15 percent to touch $90 billion by 2017. A crucial factor that is playing a key role in the growth of the segment is the gradual shift in patient behavior, from only addressing acute diseases to looking at managing chronic diseases on a regular basis.