APAC alternative investment firm takes controlling stake in leading vertically integrated pharmaceuticals manufacturer

Mumbai – PAG, a leading alternative investment firm focused on Asia-Pacific, announced today that its private equity strategy, along with consortium partners CX Partners and Samara Capital, has reached an agreement to acquire a controlling stake in Hyderabad, India-based pharmaceutical firm Optimus Drugs Pvt. Ltd..

Optimus Drugs is a vertically integrated manufacturer of pharmaceutical products including advanced intermediates, active pharmaceutical ingredients (APIs) and finished drugs. The company was founded in 2004 by Dr. D. Srinivas Reddy and today exports its catalog of more than 100 drug products to 40 countries.

The deal marks the second acquisition by the consortium’s API platform, Sekhmet Pharmaventures, which aims to develop a best-in-class hub for the development and production of bulk drug ingredients. In 2020, the consortium acquired control of Chennai-based API manufacturer Anjan Drugs Pvt. Ltd. The businesses of the two companies are highly complementary and will provide a solid foundation for the platform to make further acquisitions.

PAG views India as a particularly attractive market. As of December 31, 2021, PAG has invested over USD580 million in private equity deals in India, including the 2021 acquisition of Acme Formulation Pvt. Ltd, a leading contract development and manufacturing outsourcing (CDMO) company with a focus on complex pharmaceutical products.

Said Nikhil Srivastava, Partner and Managing Director, Head of India Private Equity for PAG: “We are very pleased to be partnering with Dr. Reddy, Optimus Drugs and its employees to help them become one of the leading API players globally. Optimus is a clear leader in R&D, manufacturing, and intellectual property management. We’re looking forward to continuing their mission to deliver high quality, affordable health products across the globe.”

Said Dr. D. Srinivas Reddy, Optimus Founder and Managing Director: “We are excited to be a part of this PAG-led platform. The combined experience of PAG, CX Partners and Samara will help Optimus become a leading player in the global API industry, and further our mission of ensuring better health outcomes for all. I would like to extend my sincere thanks to the entire Optimus family for their constant support and contribution in achieving this milestone.”

Jayendra Shah acted as transaction advisor, N.A. Shah Advisory Services LLP acted as financial and tax advisors and Khaitan & Co. acted as legal advisors to the promoters in the transaction. For the PAG-led consortium, AZB acted as legal advisors and Citadel Management Consulting, a Hyderabad-based advisory firm, acted as financial advisor.