Warburg acquires Integrace Health from Temasek and True North, hires new CEO

Global private equity firm Warburg Pincus has acquired Integrace Private Ltd, a domestic pharmaceuticals company focused on orthopedics and gynecology, and has hired Rehan Khan, a former managing director of MSD and Abbott India, as chief executive officer to steer the company's next phase of growth.

While Warburg did not disclose the details of the transaction, a person familiar with the matter said that the deal value was close to ₹1,000 crore. This is part of the investment firm's plan to create a larger pharma platform that would include the potential acquisition of Koye Pharma and Maneesh Pharma, the person added, requesting anonymity.

Warburg declined to comment while Koye and Maneesh had not responded to Mint's emails till press time.

As part of the transaction, existing shareholders True North and Temasek will fully exit their investment in Integrace, Warburg said in a statement on Wednesday. Over the years, Integrace has built a differentiated portfolio of more than 20 brands across attractive high-growth markets catering to pain management, pregnancy, and women’s health.

"Integrace has built an exceptional foundation with a differentiated portfolio in orthopedics and gynecology, a strong position in the high-growth therapeutics segments and trusted relationships with specialists. This acquisition reflects our conviction in therapy-focused, brand-led platforms and our ambition to build a scaled, market-leading pharmaceuticals business in India," said Himanshu Nema, managing director, Warburg Pincus, said in the statement.

Through its scientific marketing practices, Integrace has a network of over 45,000 healthcare professionals across India, supported by a high-quality specialist prescriber base across orthopedics and gynecologists.

"India's pharmaceutical market is large and attractive with predictable growth over the long-term, particularly in women’s health and orthopedic therapies. With Warburg Pincus' business-building expertise and healthcare investing experience, we look forward to building a scaled therapy-focused domestic formulations platform in India,” Khan said.

This deal comes as India's pharmaceutical market promises long-term growth opportunities for investors, driven by healthcare awareness, rising incomes, and expanding access to quality care. Warburg Pincus believes that this sector is well positioned for the creation of scaled, therapy-focused platforms through strategic consolidation.

Warburg Pincus has been investing in India for three decades and, over time, has built one of the country's most established healthcare investment franchises. The firm has partnered with leading businesses across pharmaceuticals, medical technology, healthcare services and life sciences, including Metropolis, Laurus Labs, MedPlus, Meril Life Sciences and Appasamy Associates. The investment in Integrace builds on this long-standing track record of partnering with exceptional management teams to create scaled, market-leading healthcare businesses.