Singapore state investor Temasek Holdings has signed a definitive agreement to invest Rs 540 crore ($73 million) in pharmaceuticals-focused platform Integrace Pvt Ltd in which private equity firm True North holds a significant majority stake.
True North said in a statement that it will partially offload its stake after this transaction but will continue to hold a majority stake. It did not specify further details.
Integrace was set up in 2018 after True North agreed to buy Glenmark Pharmaceuticals Ltd’s orthopaedic and pain management business. The deal had valued the business at Rs 635 crore ($90 million). The same year True North had also roped in Kedar Rajadyne, who was chief operating officer and president of Piramal Enterprises Ltd's consumer products business, to head Integrace. In January 2020, True North via Integrace also acquired Glenmark’s gynaecology business in India and Nepal for Rs 115 crore (about $16.2 million) in cash.
Integrace's Rajadyne said in the statement that the funding from Temasek will help the company to make more acquisitions in the near future.
"Our approach has been to have sustainable and differentiated scientific practices which build bigger brands, potentially number one or number two in their respective markets," added Rajadyne.
Temasek has been quite active in its investments in India's pharmaceuticals and healthcare space.
The Singapore investor had pumped in more than $600 million in three Indian drugmakers, including Glenmark Pharmaceuticals, during 2014-15. The other two investments were in Sun Pharmaceutical Industries Ltd, India's top drugmaker, and privately held Intas Pharmaceuticals. These were among the top five private equity deals in India’s pharmaceuticals sector till that time.
Temasek sold its remaining stake in Glenmark Pharmaceuticals last year.
It has also bet on eye care chain Dr Agarwal’s Health Care Ltd, multi-specialty hospital Medanta and oncology chain Healthcare Global Enterprises. It is also an investor in epharmacy startup PharmEasy.