Brinton Pharma eyes second round of funding to finance growth

Pune-based generic drug-maker Brinton Pharmaceuticals, which has raised USD 4 million from Tata Capital's healthcare-focused fund, is now looking at raising the second round of funds to finance its growth plans.
The two-year-old company is already a leading player in the domestic dermatology segment, claimed its management.
"We have raised USD 4 million from Tata Capital's healthcare-focused fund by diluting 16 per cent stake. We are now looking at raising second round of funding as our Australian private equity investor Marigold, which holds 14 per cent stake, has decided to exit," Brinton managing director Rahul Darda told PTI here.
The fresh investment will support its plans to enter newer areas such as paediatrics and gynaecology, Darda said, adding he is also looking at setting up a pharma unit in Pune with an investment of Rs 25 crore by 2021, Darda said.

The dermatology market is estimated at Rs 6,500 crore while paediatrics segment is around Rs 8,000 crore. These two segments are among the fastest growing categories in the domestic pharma market, he said.
The company also has plans to enter other therapeutic areas, including orthopaedics by 2019-20 and expand its international operations.

"We are exporting to 11 countries now, mainly into the Caribbean and African countries. We are looking at adding another 20 countries by 2022. The geographies we are focusing on include the CIS (ex-USSR republics) and more African countries, he added.
Currently the company earns almost 70 per cent of its revenue from the domestic market, and the rest from exports.

Darda expects the same ratio to continue given the relatively larger size of the domestic market. Brinton is targeting revenue of around Rs 68 crore in FY18 and Rs 130 crore in FY19 and Rs 500 crore by FY22.
Healthcare has become one of the country's largest sectors, both in terms of revenue and employment generation. A report by Deloitte Touche Tohmatsu India indicates the size of the industry will reach USD 280 billion by 2020 from the present USD 160 billion.