TPG invests in India's Sai, Tata Capital exits

Financial terms of the transaction have not been disclosed, though reports in Indian media put TPG’s investment at around $135 million for a 40% stake including both Tata’s holding and a primary cash infusion. TPG plans to leverage its expertise and connections in the global healthcare sector to help Sai execute its growth strategy. Puneet Bhatia, co-managing partner of TPG Capital Asia, and Mitesh Daga, a principal at the firm, will join Sai’s board.

Sai provides drug discovery, development, and manufacturing solutions for global pharmaceutical and biotechnology companies. It serves seven of the top 15 worldwide drug companies and has a pipeline of 25 new medicines from its partners that will launch through 2025.

Tata invested in Sai in 2016 alongside HBM Healthcare Investments; according to AVCJ Research the two investors committed an undisclosed amount for a 45% stake.

“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 Bhatia in a statement. “In Sai, we see an opportunity to partner with a high-quality, end-to-end provider offering reliable solutions for life-changing, new products.”

TPG's Asia healthcare portfolio includes India’s Manipal Hospital Enterprises, Taiwanese contract research organization OPC Holding, and Australian medical researcher Novotech. The firm also operates Asia Healthcare Holdings, a healthcare-focused operating and investment platform, through its middle market investment platform TPG Growth.

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• Topics
• South Asia
• Healthcare
• Exits
• Expansion
• India
• TPG Capital
• Tata Capital
• Exit
• Pharmaceuticals