India’s Ascent invests in women’s pharma producer
Indian private equity firm Ascent Capital has invested INR1.25 billion ($17.5 million) in Naari Pharma, a women's health pharmaceutical business focused on hormonal generics.
Founded in 2016, Naari Pharma, formerly Indo Phyto Chemicals, is majority owned by Tenshi Life Sciences (TLS), a pharmaceutical holding company controlled by Arun Kumar, the chairman of Strides Pharma.
Naari Pharma focuses on developing and manufacturing intermediates, active pharmaceutical ingredients (APIs) and finished dosage formulations (FDFs) for female hormones. The word Naari means female in Hindi.
In 2017, TLS acquired a 60% stake in Naari. Kumar’s pharma-focused holding company specialises in acquiring and turning around struggling companies. It currently owns a majority stake in five other companies.
Naari says it has over 30 hormonal generics in its product portfolio and is looking to scale its API operations in Japan, the US, and the EU. TLS states that Naari is one of only three pharma producers solely dedicated to women’s healthcare globally.
According to credit rating agency ICRA, TLS could struggle to stay profitable after selling off a majority stake last year in its Sterling Pharma business, a key revenue driver. Last month, Naari sold its hormonal API manufacturing facilities to Natural Capsules as well. That leaves a sole facility in Rudrapur that can manufacture FDFs.
Naari states it will use the fresh capital to invest in R&D and facilities and to expand its presence in newer markets. It currently has regulatory approval to sell products in more than 30 markets. It does not yet have a license to sell in the US.
“We have been scouting for pharma platforms in niche domains with focus on global markets led by exceptional operating teams - Naari fits this bill perfectly,” said Raja Kumar, founder and managing director at Ascent .
Ascent, founded in 2009, is a growth-focused private equity firm formerly associated with UTI Ventures. Current active investments include Acko General Insurance, online grocery retailer BigBasket, and gaming studio 99Games. It bears no relation to the Myanmar-focused private equity firm of the same name.
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