Tata Capital Healthcare-backed Linux Laboratories hires Avendus as banker to raise up to $70 million
Mumbai: Tata Capital Healthcare Fund-backed Linux Laboratories, which focuses on central nervous system (CNS)-based native formulations, has appointed Avendus as advisor to facilitate capital raising, two people familiar with the matter said.
The Chennai-based company, on condition of anonymity, aims to raise $50-70 million to fund its growth plans through organic and inorganic growth, doubling its existing categories and expanding its footprint beyond India. They added that the deal is expected soon.
Avendus and Linux declined to comment on the matter.
If it goes as planned, this will be the second external capital round in more than four years after Tata Capital’s healthcare fund invested in the company. According to a media report, the fund invested approximately $10-13 million in the company in 2021.
This development also comes against the backdrop of intense competition dominated by Indian generic drug manufacturers and large pharmaceutical companies.
Founded in 2007 by Keerthivasan K. and Ananda Kumar, Linux specializes in niche segments such as neurology, psychiatry and cosmetic dermatology.
Over the years, the company has introduced a wide range of evidence-based treatments and established a manufacturing unit to have greater control over quality, reliability of supply and innovation in formulations.
Linux formed its international business division in 2020 to expand some of its brands and capabilities outside India.
Beyond CNS, its operations include dermatology, neutraceuticals and cardio, and has expanded into aesthetics and skin health with the acquisition of the Biomedica cosmetics business. It also acquired key derma brands from India Bulls in 2022 and acquired Cipla’s established brands to strengthen its presence in the dermatology and cardio-diabetic business unit.
Linux reported revenue of: ₹285 crore in FY25 ₹250 crore a year ago. Profit expanded ₹compared to 26 crore ₹17.7 crore in FY24, according to records accessed by Tofler.
Overall, the global pharmaceutical market currently stands at around $1.6 trillion and the Indian market will be worth around $55 billion by 2025, according to a report by Bain & Co. This is expected to reach a value of $120-130 billion by 2030, with India’s share increasing from the current 3% to 3.5% to around 5%.
The report stated that the Indian pharmaceutical market is unique in that the export market is as large as the domestic market and both are expected to grow in the foreseeable future.
According to online reports, Linux competes with Hetero Healthcare, Micro Labs, Biological E, Teva Pharmaceuticals, Gland Pharma, Sandoz, Macleods Pharmaceuticals, Torrent Pharmaceuticals and Cipla in various segments.
