Private equity firm True North has agreed to acquire Glenmark Pharmaceuticals Ltd’s gynaecology business in India and Nepal for Rs 115 crore (about $16.2 million) in cash.
True North is making the acquisition through portfolio company Integrace Pvt. Ltd, Glenmark said in a stock-exchange filing. The transaction is likely to be completed by the end of March.
This is the second such transaction between True North and Glenmark. The homegrown PE firm had, in 2018, agreed to acquire Glenmark’s orthopaedic and pain management business in India and Nepal, valuing the business at Rs 635 crore ($90 million then).
The orthopaedic business has registered “strong growth”, giving Integrace an opportunity of replicating the same in other therapies, True North said in a separate statement. It added that it is “enthusiastic” about the potential of Glenmark’ gynaecology team and brands and that it believes Integrace would be able to grow this vertical.
The latest transaction involves Glenmark brands Dubagest, Mumfer, Fenza and Milical, along with the sales and marketing team of the gynaecology division. The business accounts for less than 1% of Glenmark’s total revenue.
True North said the country’s gynaecology segment is estimated at Rs 12,500 crore and has been growing faster than the broader Indian pharmaceutical market. Glenmark’s brands operate in about 20% of the market, it said, adding that there are some fast-growing spaces that can still be explored.
Praneet Singh, partner at True North, said the Integrace business now has an additional growth opportunity in the gynaecology speciality. Integrace CEO Kedar Rajadnye concurred with Singh and added that the gynaecology market, like the orthopedics market, is growing faster than the Indian pharmaceutical sector.
Rajadnye also said that Integrace aims to be among the top players in the Indian pharmaceutical sector by 2030. The company’s focus will remain on driving organic growth, but acquisitions will continue to be an important route. “We will be continuously evaluating both bolt-on acquisitions and platform buys to help us achieve our goals.”
For True North, the transactions adds to its investments in the pharmaceutical and healthcare sector. Earlier this month, the PE firm had inked a deal to invest Rs 536.25 crore ($74.84 million) in biotechnology firm Biocon Ltd’s biosimilar unit Biocon Biologics.
True North's other healthcare portfolio companies include hospital chain Aster DM Healthcare Ltd and single-specialty birthing chain Cloudnine Hospitals.