Actis Biologics plans to raise $380 million by diluting stake in arms

Actis Biologics, the US-based biotech drug research company, plans to raise about $380 million by selling stakes in its Indian and Malaysian arms, to expand operations.

Actis has plans to raise about $300 million by selling a substantial stake in its Malaysian arm, Actis Biologics Malaysia Sdn Bhd, which is setting up a biocity at Melaka.

The Indian arm, Actis Biologics Private Ltd, would also dilute about 8-10 per cent to private equity investors and another 10 per cent to the parent company, Actis Biologics, to raise about $80 million, the company’s Chairman and Chief Executive Officer, Sanjeev Saxena, told Business Standard.

The US-based parent company will invest $40 million, including a $20-million loan, in the Indian arm against a stake of 10 per cent. The fund infusion is to rope in a US-based contract manufacturer to manufacture Angiozyme, its flagship cancer drug that will soon enter into third phase of clinical trials. The company would raise another $30-40 million from private equity players by diluting 8-10 per cent, he said.

Actis Biologics has 30 per cent stake each in Actis Biologics Private Ltd and Actis Biologics Malaysia Sdn Bhd.

“We are talking to a few real estate developers and investors to partner with the biocity, which is at present on hold due to real estate issues and after effects of economic slowdown,” said Saxena.

In the last two years, Actis is trying to set up the first phase of its biocity at an investment of $1 billion to house about 25 units in a 270-acre acre area. In the second phase, involving an investment of another $1.5 billion, the company plans to house 40-50 units. The Malaysian government had earlier assured to provide 500 acres adjacent to the first phase.

Actis Biologics in India is promoted by the US parent company, Saxena and a group of high net-worth individuals (HNIs) and corporate investors. So far, the company has not raised any external fund.

Actis Biologics Private Ltd, like its parent, follows a unique model of floating separate companies under its umbrella for various technologies and products under development, with Actis holding a majority stake. It is developing about six technologies.

Saxena said the company would soon launch a computer-aided breast cancer detection system. It is also developing a gene therapy programme, code named MSP 36, to treat breast and prostrate cancer. It is working with leading drug researchers in the US to develop an immunotherapy programme to fight infectious diseases like AIDS. It has also developed a patented technology, VFF2, that can reduce the cost of manufacturing of several biotech drugs.