Ichor Biologics eyes $80-100 million PE fundraise

Mumbai-based Ichor Biologics, a Hyderabad-based biopharmaceutical company, aims to raise between $80-100 million through a private equity fundraising round by selling a sizable minority share, according to sources familiar with the matter. The company's promoters, Ananda Reddy Sudini and Sujana Sudini, collectively own 95% of the shares, with Time Cap Pharma Labs holding the remaining 5%. Alvarez & Marsal has been appointed to manage the fundraising process.

Founded in 2021, Ichor specializes in plasmatherapy, producing therapeutic protein products from human plasma at its processing facility in Shameerpet, Hyderabad. Their products find applications in various therapeutic areas, such as neurology, haematology, oncology, immunology, paediatrics, gynaecology, and organ transplantation.

Ichor markets its products under its own trademark, selling them directly to branches of the Indian Medical Association (IMA) and through dealers and distributors to medical practitioners, as well as exporting to international markets.

The company's primary products include Hemalb, Clotnine, IGAMA, Fibroseal, Seralb, Clotate, and Immuglo. In the fiscal year 2024-25 (FY25), Ichor reported a revenue of $14.7 million, a decline from $17 million in the prior year. However, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell to $2 million in FY25 from $4 million in the previous year, based on Tracxn data.

Ichor competes with several Indian companies, including Reliance Life Sciences, PlasmaGen BioSciences, Virchow Biotech, and Promea Therapeutics. Notably, PlasmaGen BioSciences secured a `150 crore investment from ViNS Bioproducts in December 2023, valuing the company at over `1,500 crore. Ichor is already backed by UK-based Artian Investments, Ashish Kacholia, an investor in the public market, Eight Roads Ventures, and FPrime Capital.

India's plasma protein therapy market is projected to reach $500 million by 2030, expanding at a compound annual growth rate of 4% during that period. In 2021, Ananda Reddy Sudini acquired Hemarus Therapeutics' biopharma business through a slump sale after transferring drug licenses from Hemarus. During its initial years, Ichor has focused on streamlining its production and operational processes.

In FY24, the company undertook a significant expansion and modernisation project, boosting its annual plasma processing capacity from 130,000 litres to 281,000 litres by investing `165.33 crore.