Around $20m of the purchase price will be invested in Rubicon’s business according to Everstone spokesman Kamil Zaheer, who cited the firm’s bioavailability enhancement, taste masking and custom release technologies as drivers for the move.
He also highlighted Rubicon’s manufacturing facility in Ambernath near Mumbai, which has capacity to produce 800 million a year, as a driver.
The facility is listed on the US Food and Drug Administration’s (FDA) database and is classified as NAI (No Action Indicated) which indicates the agency observed no objectionable conditions or practices during an inspection.
In addition, Zaheer said Rubicon’s decision to start filing Abbreviated New Drug Applications (ANDAs) for its own generic drug products with the US FDA was another attractive reason for the investment.
According to Rubicon’s website the firm also offers lifecycle management services.
The deal sees former backer Kotak Private Equity sell its entire shareholding in Rubicon, which it had held since investing $4.62m in 2007.
Rubicon generates around 85% of its revenues from markets outside India – including Europe and the US - according to a report on Livemint.