Main Highlights
- LifeCell International announced that it has secured ₹255 crores in a financing round headed by healthcare investment firm OrbiMed Asia Partners IV.
- OrbiMed Asia Partners IV has invested Rs 225 crore, while previous partners have contributed ₹30 crore, according to the company.
- LifeCell aims to expand its technological competence, strong brand position, and broad network to enter adjacent new categories such as Fertility Health and Cell-based Therapeutics.
- OrbiMed will assume a significant minority share in LifeCell as part of the equity injection.
LifeCell International, a leading stem cell bank, announced on Tuesday that it has secured Rs 255 crore in a financing round headed by healthcare investment firm OrbiMed Asia Partners IV. LifeCell’s founders also took part in the financing, according to a statement from LifeCell International Pvt Ltd. OrbiMed Asia Partners IV has invested ₹225 crores, while previous partners have contributed Rs 30 crore, according to the company.
“We appreciate OrbiMed for supporting LifeCell,” said Mayur Abhaya, Managing Director of LifeCell International. LifeCell has transformed the approach to cord blood stem cell preservation through its innovative community banking model, and in recent years has undertaken several growth initiatives in genetic and genomic testing for maternal and newborn health, as well as innovative placental tissue-based products for wound healing.”
He also stated that, with established market leadership across sectors, LifeCell aims to expand its technological competence, strong brand position, and broad network to enter adjacent new categories such as Fertility Health and Cell-based Therapeutics.
These funds will assist in accelerating this agenda and strengthening the company’s market position, he added. Sunny Sharma, Senior Managing Director of OrbiMed Asia, will join the LifeCell Board of Directors following the completion of this acquisition, according to LifeCell.
“Through innovation and service, LifeCell has established itself as a trusted healthcare brand in maternal and infant health. We are really thrilled to work with Mayur and his team in the next phase of LifeCell’s development “Sharma stated.
Minority stake
OrbiMed will assume a significant minority share in LifeCell as part of the equity injection, and OrbiMed Asia’s senior Managing Director Sunny Sharma will join LifeCell’s board of directors following the transaction’s completion.
LifeCell, located in Chennai, was founded in 2004 to deliver human cell, gene, and tissue-based products and services for preventative and therapeutic reasons. The preceding fiscal year ended with a revenue of 234 crores. Currently, the stem cell banking division accounts for 55% of overall income, followed by the diagnostics business (over 40%) and the more recent biologics section (about 2 percent).
“Aside from stem cell banking, the biologics division will be a powerful addition to our revenue portfolio, and we anticipate that to grow in the high triple digits in the next 3-4 years,” Abhaya said, adding, “Our diagnostic division has grown by more than 50% over the last five years, and we expect to maintain a similar momentum.”
Fund deployment by LifeCell
LifeCell intends to utilize the revenues to fund its expansion goals across all three divisions. Under the stem cell banking division, it will venture into reproductive tissues such as egg and sperm preservation for both personal use and sperm donation. It will add more laboratories and extend its service offerings in the diagnostics business to include more genetic and genomic studies. LifeCell will also make an investment in transplant biologics.
LifeCell’s biologics business now produces placental tissue-based products utilized in advanced wound healing. It has received approval from the Drug Controller General of India (DCGI) for clinical studies of Meso Cell-based treatment to treat patients with life-threatening Covid-19 pneumonia and acute respiratory distress.
According to Ishaan Khanna, CEO of LifeCell International, the company has seen substantial digital adoption among its clients, with tele/digital sales accounting for more than 35% of total sales.
