Mumbai, 11 May, 2022 – PAG, a leading alternative investment firm focused on Asia-Pacific, announced today that its private equity strategy, along with consortium partners CX Partners and Samara Capital, has reached an agreement to acquire a controlling stake in Hyderabad, India-based pharmaceutical firm Optimus Drugs.
Optimus Drugs is a vertically integrated manufacturer of pharmaceutical products including advanced intermediates, active pharmaceutical ingredients (APIs) and finished drugs. The company was founded in 2004 by Dr. D. Srinivas Reddy and today exports its catalog of more than 100 drug products to 40 countries.
The deal marks the second acquisition by the consortium’s API platform, Sekhmet Pharmaventures, which aims to develop a best-in-class hub for the development and production of bulk drug ingredients. In 2020, the consortium acquired control of Chennai-based API manufacturer Anjan Drugs Pvt. Ltd. The businesses of the two companies are highly complementary and will provide a solid foundation for the platform to make further acquisitions.
PAG views India as a particularly attractive market. As of December 31, 2021, PAG has invested over USD580 million in private equity deals in India, including the 2021 acquisition of Acme Formulation Pvt. Ltd, a leading contract development and manufacturing outsourcing (CDMO) company with a focus on complex pharmaceutical products.
Said Nikhil Srivastava, Partner and Managing Director, Head of India Private Equity for PAG: “We are very pleased to be partnering with Dr. Reddy, Optimus Drugs and its employees to help them become one of the leading API players globally. Optimus is a clear leader in R&D, manufacturing, and intellectual property management. We’re looking forward to continuing their mission to deliver high quality, affordable health products across the globe.”
Said Dr. D. Srinivas Reddy, Optimus Founder and Managing Director: “We are excited to be a part of this PAG-led platform. The combined experience of PAG, CX Partners and Samara will help Optimus become a leading player in the global API industry, and further our mission of ensuring better health outcomes for all. I would like to extend my sincere thanks to the entire Optimus family for their constant support and contribution in achieving this milestone.”
Jayendra Shah acted as transaction advisor, N.A. Shah Advisory Services LLP acted as financial and tax advisors and Khaitan & Co. acted as legal advisors to the promoters in the transaction. For the PAG-led consortium, AZB acted as legal advisors and Citadel Management Consulting, a Hyderabad-based advisory firm, acted as financial advisor.
About Optimus Drugs
Optimus was established in 2004 by a team of scientists who had a passion for chemistry and for ensuring better healthcare for everyone. It is one of the fastest-growing manufacturers of Active Pharmaceutical Ingredients (APIs) and finished dosages based out of Hyderabad, India. Optimus’ mission is to provide and ensure better healthcare across the globe through its centralised research & development centre, innovative methods, cost-effective approach, high-end technology and manufacturing excellence. For more information, please visit www.optimuspharma.com.
About PAG
PAG is a leading alternative investment firm focused on APAC with three core strategies: Credit & Markets, Private Equity, and Real Assets. PAG manages capital on behalf of nearly 300 institutional fund investors, including some of the most sophisticated global asset allocators. As of 31 December 2021, PAG had 293 investment professionals in 12 key offices globally. As of 15 March 2022, PAG had approximately USD50 billion in assets under management. For more information, please visit www.pag.com.
About CX Partners
CX Partners is a leading Indian homegrown private equity fund, with its core strategy to acquire controlling or significant minority stakes in mid-sized companies, with market leading positions. The current portfolio of CX investment are in sectors including IT, Pharma, Financial Services, and consumer focused segments. The leadership team is amongst the most experienced in India, which has 60+ years of combined PE investing heritage. It has over the years a reputation of picking winners and being first movers in identifying durable and actionable investment themes across economic cycles. For more information, visit cxpartners.in.
About Samara Capital
Samara Capital is one of India’s leading mid-market private equity firms with strong operating capabilities. Samara invests in Emerging Indian Companies (EICs), businesses that have the potential for rapid growth and transformation. Samara values the importance of building trust in all their business relationships with emphasis on medium to long term value creation, nimbleness, agility while running the businesses that they invest in. Key sectors of interest are consumer / retail; healthcare/pharma; financials & business services/technology. Further information is available at samaracapital.com.
Media Contacts
PAG
Tim Morrison
Email: tmorrison@pag.com
Mob: +852 9630 2383
Adfactors PR
Apurv Gupta
Email: apurv.gupta@adfactorspr.com
Mob: +91 98926 60381
