Healthcare focused private equity firm InvAscent has invested Rs 250 crore in bulk drugs maker Malladi Drugs and Pharmaceuticals Ltd for a minority stake.
Chennai-headquarterd Malladi will use the fresh capital to expand its manufacturing capacity and to launch new molecules, said the companies in a statement.
Malladi, which was founded in 1980 by M.L.N Shastry, is engaged in manufacturing and selling of active pharmaceutical ingredients (APIs) and intermediates and contract development of drug product. The company has three food and drug administration (FDA) approved manufacturing facilities located in Ranipet and Tirupati. It sells to customers in over 60 countries across Americas, Europe, Asia, and Middle East and North Africa.
"InvAscent’s deep understanding of the pharma API/CDMO (contract development and manufacturing company) space and its track record as a value-adding investor will make this a mutually beneficial partnership," said Prashant Malladi, Chairman, Malladi.
TP Devarajan, Senior Managing Director, InvAscent said that the company is poised to grow rapidly, driven by its fermentation expertise, its global leadership in certain APIs, its pipeline of products and the strong relationships it has nurtured with its global customers.
Investment bank Veda Corporate Advisors was the exclusive financial advisor to the company on this transaction.
InvAscent is currently investing out of its third fund, which has made eight other investments including its first bet on a digital healthcare platform Medibuddy.
Meanwhile, InvAscent has so far made two exits from the second fund that made 12 investments in total. The exits from the second fund are: Sunshine Hospitals and Synergia Life Sciences.
Last month VCCircle reported that Oasis Centre for Reproductive Medicine, which runs a chain of in-vitro fertilization (IVF) centres, has hired an investment bank for a fresh fundraise to primarily facilitate an exit to InvAscent.
The private equity firm invested in eight companies including Gland Pharma from its debut fund and exited all.
