Presentation Transcript
Investing in Life Science in India: Investing in Life Science in India The Venture View
Anula Jayasuriya, MD PhD
ASSOCHAM March 28, 2006
Why Am I Here?: Why Am I Here? To 'Meet the future Nano-Bio Billionaires'!
To find and fund these superstars
Huge Opportunity in India
Both technology Innovation in India and transfer of Technology to India
Skills base
Venture vs. Private Equity: Venture vs. Private Equity Stage of company: early v. expansion
Level of risk: high v moderate
Revenue: pre v. post
Size of Investment: smaller v. larger
Assessment Focus: technology v. financial
VC creates the deals for PE
2005: PE and VC in LS: $217 MM in 13 deals
What does LS Encompass?: What does LS Encompass? Therapeutics – novel and generic
Diagnostics
Devices
R andamp; D Tools and Reagents
Instruments
Health Care Delivery – hospitals, clinics
Services:
CRO; Chemistry; Labs; Pharmacy
What VC’s Look For: What VC’s Look For Need addressed by disruptive technology
Technology backed by defendable IP
Business model
Valuation/Exits: IRR; 5-10x return
Cost of development and time lines
Competition
Why VC is Important: Why VC is Important Big player in any tech boom
Small co’s challenge establishment – disruption
Biggest Challenges in India: Biggest Challenges in India Deal Flow
Management Skills
IP
Business culture differences (own the task rather than the problem; control; family businesses; term sheets
Exits
Business Models: Business Models CRO/MFG/services – fee for service
Collaborations/ JV – Risk Sharing
Wholly owned Subsidiary of Ex US co
Wholly Indian Company
VC Value Proposition: VC Value Proposition Financing: long-term equity
Business Partner: share risk and reward
Networks: Access to expertise and alliances
Mentoring
Exit
DFJ Suriya Fund: DFJ Suriya Fund LS investments in US-India corridor
$ 50-$100 MM
Value creation in India – beyond pure outsourcing
Two partners in India; one in the US
DFJ sponsorship