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PAG to acquire controlling stake in contract drug manufacturer Acme Formulation

PAG is currently investing out of its $6 billion PAG Asia III buyout fund, with a strong commitment to investing in the Indian market since 2019 (REUTERS)Premium
PAG is currently investing out of its $6 billion PAG Asia III buyout fund, with a strong commitment to investing in the Indian market since 2019 (REUTERS)

  • Acme provides contract development and manufacturing services to major Indian and global pharmaceutical companies. The firm focuses on products such as sterile injectables, hormones, and other complex oral solid formulations

MUMBAI: PAG, an Asia-focused private equity firm, on Thursday said that it has reached an agreement to acquire a controlling stake in Acme Formulation Pvt Ltd, a contract development and manufacturing outsourcing (CDMO) company with a focus on complex pharmaceutical products. PAG will invest $145 million (approx 1,054 crore) to acquire a controlling stake in the company.

Founded in 2005 by Viral Shah, Acme provides contract development and manufacturing services to major Indian and global pharmaceutical companies. The firm focuses on products such as sterile injectables, hormones, and other complex oral solid formulations. It exports to more than 40 countries and is a trusted partner for some of the world’s leading pharmaceutical companies. Shah will retain a significant minority stake in the company and continue as managing director and chief executive of Acme.

“Acme has a great reputation for high-quality manufacturing, as well as a leading presence in attractive markets including sterile injectables. We are excited to partner with Acme’s inspiring founder Viral to further accelerate the company’s growth," said Nikhil Srivastava, partner and managing director, head of India private equity at PAG.

PAG is currently investing out of its $6 billion PAG Asia III buyout fund, with a strong commitment to investing in the Indian market since 2019. Following the Acme acquisition, PAG will have completed investments of more than half a billion dollars in India. PAG’s latest deals include investments in Edelweiss Wealth Management and Anjan Drug, manufacturer of active pharmaceutical ingredients (APIs).

“Acme’s success so far has been built on three principles: our focus on innovation, our commitment to customer service, and our ability to meet the highest international standards for quality manufacturing. PAG, with its strong track record in pharmaceutical investments, is the ideal partner to help Acme grow even further in the years ahead," said Viral Shah, founder, CEO and managing director of Acme.

Acme has three EU GMP (good manufacturing practice) approved manufacturing sites. The company is one of the leading producers of the thyroid treatment product Levothyroxine and female reproductive healthcare products and owns a U.S. FDA-approved sterile injectables facility through its subsidiary Immacule Lifesciences Pvt Ltd. Based in Himachal Pradesh, Acme and its subsidiaries employ more than 2,300 people.

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