BLUE SKY CASHES IN HATCHTECH INVESTMENT

BLUE SKY CASHES IN HATCHTECH INVESTMENT

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.

 

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

DroneShield shares shot down despite record revenue and $1.1 billion pipeline

DroneShield shares shot down despite record revenue and $1.1 billion pipeline

DroneShield (ASX: DRO) shares lost more than 20 per cent of their v...

Valuations hit $5.8 billion for Australian crowdfunded startups

Valuations hit $5.8 billion for Australian crowdfunded startups

The latest crowd-sourced funding (CSF) report released by market le...

Cash Converters emboldened by circular economy as revenue rises 26pc

Cash Converters emboldened by circular economy as revenue rises 26pc

Cost-of-living pressures and circular economy trends appear to have...

One small update brought down millions of IT systems around the world. It’s a timely warning

One small update brought down millions of IT systems around the world. It’s a timely warning

This weekend’s global IT outage caused by a software update g...