Quadria backs India drug maker Encube Ethicals

Gulf Islamic Investments, a United Arab Emirates-based private equity firm with $2.5 billion in assets under management, is part of the consortium. They are acquiring a combined 15% stake for $120 million, according to AVCJ Research.

It comes within two weeks of Quadria acquiring a significant minority position in Indian diaper maker Nobel Hygiene, facilitating exits for CLSA Capital Partners and Access Asset Managers. That transaction saw Access sell its final 18.7% stake for about $25.6 million.

Encube operates what is said to be the world’s largest single-site factory for topical medications in Goa with the capacity to produce more than 400 million units annually. In addition to manufacturing, the company is active in R&D and contract development for a global customer base. It claims to have launched multiple own products in regulated markets since its inception in 1998.

The company aspires to be a global end-to-end leader in the topical products category within the next five years. There has been significant traction on this front since Multiples’ investment in 2016, which underpinned the transition from a purely contract manufacturing player to a fully integrated pharma company with a footprint in the US. The R&D team in the US currently includes more than 150 scientists.

“Encube has an unparalleled track record in topicals manufacturing, with an uncompromising commitment to the highest quality, safety, and reliability standards,” Amit Varma, co-founder of Quadria, said in a statement. “We are impressed by the vision of Encube’s founders to provide affordable and quality topical products; we are even more impressed by their ability to realize that vision at significant scale.”

Private equity investment in India’s healthcare sector reached $3.8 billion in 2020, more than twice the 2019 total. The major recipients were drug formulation and ingredients manufacturers, which last year were said to be transacting at valuations of 15-20x and 7-10x EBITDA, respectively, up from the commonly single-digit ranges of 3-4 years earlier. Investment in the sector amounts to $799.4 million so far this year.

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• Topics
• South Asia
• Healthcare
• Expansion
• Exits
• Open market
• India
• Quadria Capital
• Multiples Alternative Asset Management
• manufacturing
• Pharmaceuticals