True North to acquire orthopedics division of India’s Glenmark

The division will be transferred to a new entity to be incorporated by True North, which will market its product portfolio in India and Nepal under the brand Integrace. True North will acquire the asset through its fifth fund, which closed in 2015 at $700 million when the firm was known as India Value Fund Advisors. The transaction is expected to close in the next three months, according to a disclosure.

Glenmark’s orthopedics and pain management division includes drug brands such as Esoz, Bon K2, and Collasmart. It reported revenue of INR1.6 billion for the year ended March 2018, accounting for about 1.7% of the company’s total revenue and 6% of its sales in India.

Established in 1977, Glenmark manufactures and markets both generic drugs and active pharmaceutical ingredients in over 80 countries, including the US, India, and various countries in Europe and South America. It has 16 manufacturing facilities and six research and development centers across five countries.

Glenmark’s investors include Singapore state-backed investment group Temasek Holdings and the International Finance Corporation, which invested in 2015 and 2016, respectively. According to its most recent annual report, its promoters, the Saldanha family, a have a 45% stake, while public shareholders own the rest. The company reported INR64 billion in revenue for the year ended March 2018, down from INR81 billion last year. Over the same period net profit fell from INR21 billion to INR10 billion.

True North has backed a number of companies in India’s healthcare space; current investees include hospital chains Kerala Institute of Medical Sciences (KIMS), Aster DM Healthcare, and Cloudnine Hospitals. The firm also holds a stake in medical technology manufacturer Trivitron Healthcare.

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• Topics
• South Asia
• Healthcare
• Buyouts
• India
• Pharmaceuticals
• True North