Carlyle, a US private equity firm, on Tuesday, announced plans to launch a generic Pharmaceutical platform in India in collaboration with Viyash Life Sciences. An affiliated entity of Carlyle Asia Partners and Viyash, named CA Hull Investments, will aim to emphasize investment in active pharmaceutical ingredients.
However, Carlyle has not yet mentioned the financial terms, but according to sources, some $300 million figure is expected. Viyash was formed by Hari Babu, a leading Global CEO and COO of Mylan India, in collaboration with Shri Hari Raju Kalidindi, who was the co-founder of Laurus Labs. Vinyasa is a successful manufacturer of active pharmaceutical ingredient intermediaries with the aim to consolidate numerous other former intermediaries, formulation assets, and API to innovate and integrate offerings for a huge generic customer pool.
Carlyle started its partnership with Viyash back in June 2021 while the company undertook the controlling state in Symed Labs. Symed Labs is a global manufacturer of niche APIs to facilitate backward integration. However, Viyash also acquired a significant stake in Appco Pharma. Appco Pharma is a formulation player emphasizing on the US market to help expand access to US generic markets and formulation capabilities.
However, Viyash, with such acquisition, has around ten manufacturing facilities in India as well as one formulation facility in the US. Also, it is now one of India’s leading middle-tier integrated formulation and API players. The major chunk of sites is US FDA approved for intermediaries and are highly efficient of servicing semi-regulated and regulated markets.
In addition, being the largest provider of generic globally, India has strengthened its position as a farmer hub. Also, it continues to be of significant potential in the market and is expected to be captured with the targeted consolidation of other players in the generic industry.
India’s generic pharma sector is witnessing prominent secular growth and is likely to create a greater share in the global market. Furthermore, the country’s growth is supported by robust R&D capabilities, strong manufacturing skills, a technical workforce, and a high proportion of FDA-approved facilities.
In addition, the investment is in line with giant PE firms that have built an investment platform for life sciences and healthcare businesses. Hyderabad-based advisory company management consulting assisted as an advisor to Carlyle.
Carlyle houses around $14.7 billion in the healthcare sector with local bets, including Visionary RCM Infotech, Medanta, Metropolis, Indegene, Piramal Pharma, and SeQuent Scientific.