MUMBAI: Singapore-based private equity firm Everstone Capital will invest close to $270 million for a significant stake in Apothecon Group, which includes India-based Apothecon and US-based Navinta, it said in a statement on Tuesday.
The combined platform is a regulated-markets-focused speciality formulations business with in-house formulation capabilities and captive active pharmaceutical ingredient (API) manufacturing. It has a diversified commercial presence across the US, Europe and other international markets.
Apothecon was founded in 2003 by industry veterans Mahendra Patel, former chief scientific officer at Sandoz and co-founder of Invamed (later acquired by Sandoz), and Joe Renner, former chief operating officer of Sandoz and chairman of Zydus US. The group has a diversified and expanding portfolio spanning injectables, oral solids, and other dosage forms. It also has in-house capabilities in complex chemistry and a manufacturing and R&D platform across the US and India, compliant with regulated-market standards.
Patel will continue as chairman, while Everstone will appoint Puncham Mukim and Arjun Oberoi as its nominees to the board.
Everstone said it will focus on accelerating the company’s product pipeline, expanding its commercial reach into new geographies, and pursuing complementary acquisitions. The founding promoters will retain a meaningful stake in the business, the companies said.
Waymade Capital, Apothecon’s European partner, also participated in the transaction through its investment vehicle.
Sector bet
This marks Everstone’s latest investment in Indian pharma and healthcare. It has previously invested in Rubicon Research, Slayback Pharma, Softgel Healthcare, Integris Medtech, Sahyadri Hospitals and OmniActive Health, among others.
Private equity firms have increasingly been investing in Indian companies with speciality and complex drug development and manufacturing capabilities, as markets for several generics are expected to open over the next four to five years, unlocking value for domestic drugmakers.
“With its own manufacturing facilities, the company (Apothecon Group) has built a resilient and self-reliant business model…This investment adds to Everstone Capital’s history of building and scaling healthcare and pharmaceutical businesses globally," Atul Kapur, co-founder and chief investment officer at Everstone Group, said in a statement.