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November 25, 2021 Vccircle

Veda advises Symed on sale to Carlyle owned Generics Platform

Mumbai :  Global investment firm Carlyle and Hyderabad-based drugmaker Viyash Life Sciences Pvt Ltd have jointly set up an integrated generic pharmaceutical platform in India, the PE firm said.

Viyash has also acquired a controlling stake in Appco Pharma LLC, US, a formulations player focused on the US market which will help expand access to US generics market and formulation capabilities, the companies said.

Viyash Life Sciences was incorporated in 2019 with paid-up capital of Rs 50 crore. It was founded by Dr Hari Babu, a former global COO and head of India operations for Mylan Pharmaceuticals, along with co-founder Dr Srihari Raju Kalidindi, who was previously the Executive Director of Indian pharmaceutical company Laurus Laboratories.

Viyash is an API (active pharmaceutical ingredients) manufacturer that intermediates with a strategy to consolidate other pharma intermediates, API and formulation assets to create an integrated offering for large generics customers.

In June 2021, Carlyle partnered with Viyash after acquiring a controlling stake in Hyderabad-based Symed Labs, a manufacturer of niche APIs to enable backward integration. VCCircle exclusively reported the deal in April, the second API bet for Carlyle in India.

“With these acquisitions, Viyash has ten manufacturing facilities in India with a combined capacity of around 2000 KL as well as one formulation facility in US, and is now one of India’s leading mid-tier integrated API and formulation players. The majority of the sites are US FDA approved for API or Intermediates and are capable of servicing both regulated and semi-regulated markets,” the company said.

Hyderabad based advisory firm Citadel Management Consulting acted as an advisor to Carlyle. Veda Corporate Advisors advised  Symed Labs on their sale to Carlyle.

In the future Viyash intends to seek further investment opportunities to build scale by targeting acquisitions with niche differentiated capabilities that complement the existing operations of the platform. It will focus on both regulated and emerging markets for generics supply, it added.

“As the largest provider of generics in the world, India has solidified its position as a pharma hub. There continues to be significant potential in the market which we believe can be captured through targeted consolidation of complementary players in the generics industry,” said Neeraj Bharadwaj, Co-head – Asia Healthcare and India, Carlyle Asia Partners.

Dr. Hari CEO, Viyash platform, said, “Viyash will focus on providing global formulation players with end to end manufacturing capabilities. Our next phase will be to drive further integration and growth opportunities across the three businesses.”

The firms said that India’s generic pharma industry is expected to gain greater share within the global market supported by its strong manufacturing and R&D capabilities, skilled technical workforce, and high proportion of FDA approved facilities.

Carlyle’s investments

US-based Carlyle has already been expanding its presence in India’s pharmaceutical sector. Globally, it has $293 billion of assets under management (AUM) globally as of September 30, 2021.

The PE major has invested more than $14.7 billion of equity in over 80 deals in the global healthcare sector as of September 30, 2021.

In India, Carlyle has invested and committed more than $5.5 billion across 44 transactions as of September 30, 2021.

Last year, it acquired a majority stake in SeQuent Scientific Ltd, which makes APIs for animal healthcare, and a 20% stake in Piramal Pharma Ltd in what was its biggest healthcare deal in India.

Its other healthcare investments in India include Indegene, Metropolis, Medanta and Visionary RCM Infotech.

Carlyle portfolio companies today employ 300,000 plus Indian employees, agents and contractors. Meanwhile, Carlyle employs more than 1,800 people in 26 offices across five continents, the company said.