TPG Capital is likely to acquire a minority stake in Hyderabad-based Sai Life Sciences.
However, both the companies have not divulged any specific details of the deal, but as per sources, TPG capital would invest around Rs 930 crore and acquire around 40 per cent stake in the Indian firm.
Founded in 1999, Sai manufactures active pharmaceutical ingredients used in making formulations, tablets, and syrups.
Currently, the manufacturing firm is serving seven out of tip 15 global pharmaceutical companies and in a good position to launch 25 new medicines by global innovator partners by 2025.
Though this investment, TPG is looking to build a strong healthcare presence in Asia and across the globe. It is to be noted that the private equity firm has invested around $12 billion in the healthcare sector in companies, namely Par Pharmaceutical, Matrix Labs, IQVIA (formerly QuintilesIMS), Manipal Hospitals, Novotech, ShangPharma and Adare Pharmaceuticals.
“In recent years, contract development and manufacturing companies have started to gain market share as pharma innovators search for more cost-effective, efficient and comprehensive development and manufacturing solutions,” said Puneet Bhatia, co-managing partner of TPG Capital Asia. “In Sai, we see an opportunity to partner with a high-quality, end-to-end provider offering reliable solutions for life-changing, new products.
The investment from TPG reflects the strength, quality, and growth potential of the business, said Sai CEO Krishna Kanumuri.