India's Multiples invests $88m in BDR Pharma
Multiples Private Equity has led a consortium in the acquisition of a 9.3% stake in India’s BDR Pharmaceuticals for INR 6.8bn (USD 88.5m).
The consortium includes Times Group and family office WRG Invest as well as various high net worth individuals. This is BDR’s first private equity investment since its inception in 2003.
The company manufactures both active pharmaceutical ingredients (APIs) and finished formulations for a domestic and international clientele. It specialises in oncology, critical care, gynaecology, and neurology. The oncology oral formulations factory is compliant with World Health Organisation and EU standards.
BDR has a growing presence in dermatology and is notable for producing several COVID-19 drugs. It claims to leverage strategic partnerships with globally renowned pharma operators. Revenue came to INR 12bn in the 2021 financial year.
The fresh capital will support R&D, M&A, and vertical integration through the expansion of manufacturing capacity. Construction is set to begin on an oncological injectables facility that will seek approvals from accreditation agencies across the US, Europe, Africa, and Asia.
There are also plans to build a new API manufacturing facility dedicated to biotech products. India’s API market was said to be worth about USD 12bn in 2021 and set to grow at about 12% a year through 2027. This is being driven substantially by reduced output from China, the segment’s global leader.
India’s broader pharmaceutical industry has attracted growing private equity investment in recent years as compliance with international standards has improved. The country now has more drug manufacturing facilities approved by the US Food & Drug Administration (FDA) than any other country outside the US.
PAG was active in this space earlier this week, having supported the acquisition of Optimus Drugs as part of a pharma platform joint venture with CX Partners and Samara Capital. Optimus is similarly active across APIs and formulations but also claims expertise in drug intermediates.
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