The personal fairness arm of Goldman Sachs, is all set to accumulate about 33% stake in Hyderabad-based GVK Biosciences, making pharma & healthcare because the favorite funding vacation spot amid Covid pandemic, ET reported on Monday.
In January, ET first reported that bulge bracket personal fairness funds together with a fund managed by Goldman Sachs Inc have been shortlisted for buying minority stake in GVK Biosciences.
The opposite contenders who have been within the race embrace Carlyle Group, Warburg Pincus, Basic Atlantic and Quadria Capital and Singapore’s Temasek Holdings.
The deal will worth Aragen, co-promoted by the GVK Group and DS Brar, the previous CEO & managing director of Ranbaxy Laboratories, at Rs 7300 crore ($1 bn), ET reported.
Current shareholder Chryscapital will promote its 17% stake together with promoters who will dilute about 16% stake in Aragen.
Aragen is a number one supplier of outsourced discovery, growth, and manufacturing providers throughout each massive and small molecule platforms. The corporate serves a worldwide buyer base which spans to the USA, Europe, and Japan, the assertion added.
Began in 2001 by Sanjay Reddy, Aragen (previously GVK BIO) noticed the entry of DS Brar in 2004 as promoter & chairman. Brar& household, Reddy & household collectively maintain greater than 80% stake in GVK BIO. Aragen competes with Biocon-backed Syngene Worldwide.
For FY2020, Aragen posted a income of Rs.950 crore, with an EBITDA of Rs.275 crore. Half of its income comes from drug discovery analysis whereas CRAMS (contract manufacturing) that features active pharmaceutical ingredients (APIs) contributes the remaining.
In 2014, GVK BIO acquired Aragen Bioscience, Inc., a US-based preclinical CRO specialising in biologics providers, and the merger was accomplished in 2017.
“We consider this new funding at this essential juncture in our firm’s growth underscores the large alternative forward. Working with Goldman Sachs, we’re well-positioned to deal with the alternatives in entrance of us to turn out to be a number one, world participant with complete end-to-end options for drug discovery and growth,” mentioned Manni Kantipudi, CEO of Aragen Life Sciences.
Aragen staff over 3,000 professionals globally and serves greater than 450 life sciences clients throughout biotech and enormous cap corporations. “Aragen is properly positioned to learn from the secular development of elevated outsourcing by the life sciences trade,” mentioned Rajat Sood, managing director at Goldman Sachs Asset Administration. Goldman Sachs is actively looking for to take a position and foster main, nationwide champions of India who’re constructing corporations of a world scale, he added.
Goldman Sachs is an lively investor in India, deploying greater than $3.6 billion in capital since 2006.
Goldman’s earlier investments in Indian healthcare embrace Biocon Biologics, BPL Medical Applied sciences, CyteCare Hospitals, Max India and Nova Medical Facilities.
“We’re proud to have seen Aragen develop and scale from offering discovery providers to efficiently increase into growth and manufacturing, in addition to biologics,” mentioned Raghav Ramdev, Managing Director at ChrysCapital.
The worldwide Contract Analysis Group (CRO) providers market is predicted to cross $70 billion by 2025 from $47 billion in 2020. The prescribed drugs contract manufacturing market in India involves about $9 billion in 2019 and is predicted to achieve $23 billion by 2025.