Local biotechnology firm Philab Holdings Corp. has obtained a P400-million financing from Altus Capital Partners, a private equity firm affiliated with the International Finance Corp., ahead of the company’s follow-on stock offering.
Proceeds from this funding deal will provide working capital for Philab, a 50-year-old healthcare and life science enabling firm, to carry out contracts mandated by various government agencies to roll out medical and education kits nationwide.
“We are proud to support the outstanding development and long-term growth of Philab. They are a prime example of what we look to invest in: pioneering companies with products and services that have profound impact in the communities they serve,” Altus managing director Pavan Gidwani said in a press statement on Tuesday.
A pioneer in the Philippine health science sector, Philab produces and supplies majority of the country’s medical and education materials for laboratories and schools. The Department of Education has also partnered with the company in supplying math and science teaching kits to over 34,000 schools in the country.
Philab has initiated an affordable self-diagnostic screening kit under the brand LabIt. The self-test kit allows early determination of dengue, the debilitating mosquito-borne disease.
As of December 2016, Philab has been awarded a total of P3.2 billion in contract by the Department of Education, the Department of Health and the National Institutes of Health – UP Manila.
At present, Philab derives 80 percent of its business from the education sector. Projected revenue collection from DepEd alone is about P2.4 billion this year.
Altus Capital is an investment manager with an 11-year track record investing in and advising on structured finance and special situations transactions across Southeast Asia. Through its partnership with a network of institutional investors, Altus has built an investment platform that span loan portfolios, hospitality real estate, affordable housing and single credits. The firm is managed by Altus Capital Partners, an affiliate of the World Bank Group’s IFC. The firm employs 25 people with offices in Manila, Bangkok, and Singapore, and has over $250 million in assets under management.