BackPE consortium buys controlling stake in API maker Anjan Drug
In May, PE firm Carlyle announced a deal to acquire up to 74% stake in SeQuent Scientific for ₹1,580 crore, while US giant KKR in July agreed to acquire about 54% stake in Mumbai-based JB Chemicals & Pharmaceuticals for ₹3,100 crore
PremiumNEW DELHI: A consortium of private equity firms--PAG, CX Partners and Samara Capital--has reached an agreement to acquire controlling stake in Chennai-based manufacturer of active pharmaceutical ingredients (API), Anjan Drug Pvt Ltd.
While terms of the deal were not disclosed, PAG in a statement said the acquisition is part of the consortium’s strategy to create a “best-in-class platform for the development and production of bulk drug ingredients" and tap into opportunities in India’s API manufacturing industry.
“We see the Indian API market as a very attractive opportunity and well positioned for the future. Globally, this sector is currently growing at an estimated 8% a year, with India, one of the three largest API producers in the world, growing even faster than that," said Nikhil Srivastava, managing director and head of India private equity at PAG.
Anjan was founded in 1990 by C. Kalaichelvan and is now a supplier of APIs, a key raw material for medicines, in the central nervous system therapy area to some of the world’s largest pharmaceutical companies in markets like the US, Canada, Brazil, and Europe.
Anjan Drug’s API product portfolio includes valproic acid, used to treat epilepsy and bipolar disorder, gabapentin, used to treat seizures, and Pregablin, which is used to treat spinal cord injury, according to information available on the company’s website.
The company counts Abbott, Sanofi Aventus, Zydus group, Mylan, and Intas Pharmaceuticals among its clients.
Private equity investors’ interest in Indian bulk drug manufacturers has risen since the coronavirus pandemic amid hope that the disruption caused by it, especially in China in February and March, will spur demand for APIs in India.
In May, PE firm Carlyle announced a deal to acquire up to 74% stake in SeQuent Scientific for ₹1,580 crore, while US giant KKR in July agreed to acquire about 54% stake in Mumbai-based JB Chemicals & Pharmaceuticals for ₹3,100 crore. According to reports, Granules India, one of the country’s largest API manufacturers, has also attracted interest of various PE funds.
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