HYDERABAD: Contract research, development and manufacturing organisation (
CRDMO
)
Aragen Life Science
, formerly known as GVK Biosciences, has secured a $100 million (approx. Rs 865 crore)
investment
from healthcare focused private equity fund
Quadria Capital
.
The deal will see Quadria, which is focused on the Asian healthcare sector, acquire a minority stake in Aragen at an approximate valuation of US$ 1.4 bn. The investment will be made primarily through a fresh capital infusion, with a small portion from the sale of shares by existing investors.
Aragen said the funding will support the strategic expansion of its capabilities and infrastructure and will enable it to meet the growing demand for outsourcing services from innovators in US and Europe.
With this, Quadria becomes the second strategic investor in Aragen after Goldman Sachs. The company said the latest investment solidifies its position in the delivery of high-quality `concept-to-clinic’ and `concept-to-commercial’ services its global customers that comprises human, animal and plant health sectors.
Aragen Life Science CEO Manni Kantipudi said the investment marks a pivotal moment as the company scales up to meet the needs of a rapidly evolving market. “Our expanded capabilities will allow us to support the rising demand for integrated discovery and manufacturing services, and, most importantly, help our customers accelerate their programmes to market faster and more efficiently,” he said.
Quadria Capital managing partner & co-founder Dr Amit Varma said the PE fund decided to invest in Aragen because of its track record, customer centric approach and commitment to innovation that make it an ideal partner for global pharma companies.
“The
pharmaceutical outsourcing
sector presents compelling growth opportunities, especially in the current environment which is driven by global supply chain reorganization,” he said.
The 23-year-old Aragen caters to over 400 global pharma clients, including 15 of the top 20 large ones, with solutions ranging from early discovery to commercial manufacturing for small molecules and biologics.
The company said it is well-positioned to benefit from macro trends in the outsourcing market, with Western innovator companies increasingly seeking to diversify and secure their supply chain as a hedge against operational disruptions due to global factors.
Quadria’s investment in Aragen follows its bets on other outsourced pharmaceutical services companies such as Akums Drugs, which is India’s largest domestic focused contract manufacturer, Encube Ethicals, which is an India-based topicals focused CDMO, and Straits Orthopedics, a Malaysia-based CDMO for orthopedic medical devices.
