TPG Capital to buy into Sai Life Sciences

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MUMBAI: TPG Capital said on Wednesday it will acquire a significant minority stake in Hyderabad-based Sai Life SciencesNSE 0.33 %, in what could be seen as renewed interest in India’s pharma and life-sciences space from large foreign institutional investors. 

Though both companies did not divulge details of the deal, sources with direct knowledge of the matter told ET that the Texas-based financial investor would pump in around Rs 930 crore ($135 million) to acquire a 40% stake in the Indian firm. TPG will acquire the 33% stake held by Tata Capital and pump in some fresh money into the company in the form of growth capital, sources said. 

Founded in 1999, Sai manufactures active pharmaceutical ingredients used in making formulations, tablets and syrups. 

It is an integrated provider of drug discovery, development, and manufacturing solutions for innovator pharmaceutical and biotechnology companies. Currently, serving seven out of the top 15 global pharmaceutical companies, it is well-positioned to facilitate the launch of 25 new medicines by global innovator partners through 2025, it said in a statement. 

“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 Puneet Bhatia, co-managing partner of TPG Capital Asia. “In Sai, we see an opportunity to partner with a high-quality, end-toend provider offering reliable solutions for life-changing, new products. 

We are confident in the company’s strong service offering, customer orientation and market position, and we look forward to working with the management to grow the business.” 

TPG’s investment in Sai builds on the firm’s strong healthcare foundation in Asia and across the globe. The private equity firm has invested about $12 billion in the sector across a range of businesses. These include Par Pharmaceutical, Matrix Labs, IQVIA (formerly QuintilesIMS), Manipal Hospitals, Novotech, ShangPharma and Adare Pharmaceuticals. 

The investment from TPG reflects the strength, quality, and growth potential of the business, Sai CEO Krishna Kanumuri said. 

Jefferies was the sole adviser to Tata Capital in the transaction. 

Pharma and life sciences were among the sectors that attracted large-scale private equity investment into India at one point in time, but the pace of the deal activity has slowed, post the global financial crisis.