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Reliance invests in US based VC fund

In a rather tactical move, Reliance Life Sciences (RLS) has invested an undisclosed amount in MPM Capital, a US-based global investment management firm focused solely on healthcare investing. After its first investment in a venture capital fund, Reliance has become a limited partner in MPM Capital's newest fund, MPM BioVentures IV.

Working closely with RLS, MPM Capital said that it expects the BioVentures IV fund to invest in select emerging life science companies and to dedicate an investment professional to the MPM/RLS partnership. It also explores the potential for a new India-only seed fund. Commenting on the development, MPM Capital General Partner Dr Greene said, “We believe that Reliance's multi-faceted footprint in India provides as a natural foundation to accomplish our objectives. Similarly, we expect the collaborative effort to help Reliance deliver on its own vision of coupling US innovation and entrepreneurship with talent and service delivery in India.”

On the Reliance's side, the deal will boost the pre-clinical and outsourcing services of the company as it gets access to the portfolio of investors in MPM's kitty. MPM boasts of a portfolio of more than 80 companies which are in early biotech innovation and hence will require the services which Reliance offers. Many of these companies that MPM funds are based in US and Europe. Along with this development, RLS has also announced the incorporation of a US entity in Delaware, USA to service the clients there.

However, it is not binding for the companies in which MPM invtested, to use the services exclusively from Reliance. “We will have no direct influence on the decision making of the portfolio companies. We will compete with others to offer our services,” said K V Subramaniam, President and Chief Executive Officer of RLS. But he also mentioned that he expects about 2/3rd of the companies amongst the existing portfolio to outsource their services to RLS. Apart from this and the returns on the investment, this partnership will also expose RLS to world-class expertise in biotech research which can benefit the company's stem cells project.

Source : Express Pharma

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