India's Veeda Clinical Research acquires Bioneeds ahead of IPO
09:21, 19 July 2021
Ahead of its initial share sale, India's Veeda Clinical Research, a full-service clinical research organisation, said it acquired a 50.1% controlling stake in the privately-held pre-clinical services provider, Bioneeds India.
In a press release on Monday, the west India-based organisation backed by Indian private equity firm CX Partners announced its additional acquisition in Bioneeds, in which it had picked up a minority stake earlier in March.
This acquisition is a precursor to Veeda’s proposed initial public offering (IPO) in the Indian stock markets. The firm said it was in the process of filing IPO-related documents with the markets regulator Securities and Exchange Board of India.
In June, Veeda raised $16m from a clutch of investors including Mumbai-based private equity firm Sabre Partners and some high net worth individuals.
Research destination
The expanding budgetary allocation for research and development in global pharmaceutical companies is the opportunity the research firms looks to capitalise on.
“India is becoming an attractive destination for clinical and preclinical research outsourcing supported by quality scientific capability, emergence of the biosimilars industry, increased demand for complex generics and availability of a large number of patient volunteers,” according to a report by Frost & Sullivan India titled Clinical Research Organisation Market Report, said the press release.
Company details
Gujarat-based Veeda conducts complex clinical studies for drug makers and completed several regulatory inspections and is approved by regulators such as the United States Food and Drug Administration, the UK’s Medicines and Healthcare products Regulatory Agency, Brazilian Health Regulatory Agency and by the World Health Organization, said the statement.
In November 2018, a consortium of private equity investors led by India-based private equity player CX Partners acquired a majority stake in Veeda.
South India-based Bioneeds provides discovery, development and regulatory services to the pharmaceutical industry.