The Carlyle Group said Tuesday it has joined hands with a company set up by former executives of Mylan India and Laurus Laboratories to form a generic pharmaceutical investment platform in India.
Carlyle has teamed up with Viyash Life Sciences Pvt. Ltd, founded by former Mylan India chief Hari Babu and former Laurus Laboratories executive director Srihari Raju Kalidindi, to acquire pharmaceutical and life sciences assets.
The US-listed private equity firm is already a significant investor in India’s pharmaceutical and the broader healthcare sector. In June last year, for instance, it struck a deal to pick up a 20% stake in Piramal Pharma Ltd for as much as $490 million. Its other pharmaceutical and healthcare investments in India include SeQuent Scientific, Indegene, Metropolis, Medanta and Visionary RCM Infotech.
Viyash makes active pharmaceutical ingredients (APIs) intermediates and aims to consolidate other pharma intermediates, API and formulation assets to create an integrated offering for large generics customers.
Carlyle started its partnership with Viyash in June 2021, when the company acquired a controlling stake in Symed Labs, a manufacturer of niche APIs to enable backward integration. It has also bought a controlling stake in Appco Pharma LLC, a formulations maker, to expand its access to the US generics market and formulation capabilities.
Viyash operates 10 manufacturing facilities in India with a combined capacity of about 2,000 kilolitre and a formulation facility in the US. It intends to seek further investment opportunities to build scale by targeting acquisitions, Carlyle said.
The PE firm said the platform aims to leverage its global healthcare expertise and network of portfolio companies, and the experience of Hari and Srihari, across three businesses—pharma intermediates, API, and formulation assets.
“As the largest provider of generics in the world, India has solidified its position as a pharma hub. There continues to be significant potential in the market which we believe can be captured through targeted consolidation of complementary players in the generics industry,” said Neeraj Bharadwaj, co-head of Asia healthcare and India at Carlyle.
In all, Carlyle has invested more than $14.7 billion of equity capital in over 80 deals in the global healthcare sector as of September 2021.
Carlyle has been investing in India for the last two decades across various sectors such healthcare, pharmaceutical and financial services. It has invested and committed over $5.5 billion across 44 investments in India.
Citadel Management Consulting, a Hyderabad-based advisory firm, advised Carlyle on the deal.