Bengaluru-based Stelis Biopharma, the biotech arm of Strides Pharma Science, has raised $195 million through Series B and Series C funding, which the company will use to repay debt and for general corporate purposes.

Following the funding, Stelis has been valued at $350 million on a post-money basis. Post completion on the fundraise, Strides will hold a 33 per cent stake in Stelis, with its investment valued at $116 million. Strides will demerge and list its biopharma business under Stelis, the company said in a statement.

“Stelis is now getting into its growth phase and is witnessing strong customer traction for its Contract Development and Manufacturing Organisation (CDMO) offerings, including vaccines. We are confident to build a sustainable business and deliver significant value for our shareholders,” Arun Kumar, Founder of Strides Group, said.

Through the Series B funding, the company raised $70 million from existing investors at pre-money valuation of $155 million through partly paid shares. The family office of promoters lead the funding round with $56 million commitment, of which $15 million be invested immediately. Strides will subscribe to the balance $14 million.

The company raised an additional $125 million through the Series C round, including a primary infusion of $85 million and a secondary placement of $40 million for GMS Holdings, its existing shareholder. The funding round was led by TPG Growth along with other long-term investors Route One, Think Investments and the Mankekar Family.

The company will use the proceeds to complete its CDMO, including setting up a 6 kilolitre mammalian block, the ramp-up of process development laboratory and other technical capabilities. The funding would also be used to accelerate vaccine block infrastructure to cater to multiple vaccine types including viral vector, protein subunit, RNA, and DNA.

The transaction, which is subject to shareholder and other approvals, is expected to close in 12 months.

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