)
BLUE Sky Alternative Investments (ASX:BLA) has marked a milestone in its venture capital division, with the exit of head lice treatment company Hatchtech.
The Melbourne-based pharmaceutical company has entered into a commercial agreement with Dr Reddy's Laboratories in India. The deal is expected to be valued at up to $278 million.
This will be Blue Sky Venture Capital's first exit from its VC2012 portfolio, after investing in Hatchtech in 2013 as part of a $12 million syndicate led by OneVentures.
Along with support from existing backers, the investment allowed the company to complete the final stage of its clinical trial for Xeglyse - a treatment to kill both lice and eggs without the need for a comb.
Blue Sky Venture Capital investment director Dr Elaine Stead (pictured) says the deal is a big win for private capital markets.
"This is a huge deal for Australian venture capital, and for local talent," Stead says.
"It is also a great example of how collaborative the VC industry is in Australia which is a benefit to both investors and the investee company.
"We provided growth capital and, just as importantly, networks and expertise, bringing more smart people and useful networks to the table.
"Without a doubt, we have exceptional and world-class talent in Australia and we are starting to see excellent successes in Australian venture-backed companies that are delivering great results."
Stead says Blue Sky has a policy of taking an active role in all its investee companies to support their expansion.
Get our daily business news
Sign up to our free email news updates.
)
)
)
)
)
