Private equity firm Advent International on Monday said it has signed a definitive agreement to acquire a controlling stake in Hyderabad-based privately held pharmaceutical company Avra Laboratories for $100 million.
Avra was founded by A V Rama Rao, one of India’s distinguished scientists, in 1995, is into contract manufacturing and research services (CRAMS) and specialty active pharmaceutical ingredients (API) manufacturer with four facilities across the states of Telangana and Andhra Pradesh.
The transaction is Advent’s fifth investment in India over the past 12 months, and second in an Indian active pharmaceutical ingredient manufacturing company. Advent in February last year acquired controlling stake in ZCL Chemicals Limited.
Avra, which has a strong research and development team, is focused on niche generic molecules as well as proprietary custom synthesis business for global pharmaceutical players.
Avra has several active process patents and is the only company in the world to develop and successfully commercialise a total synthetic process for camptothecin analogs that are currently being used in antibody drug conjugates for targeted therapies in treating cancer.
“Avra Laboratories has a long and consistent track record of high profitability and above industry margins,” Advent said in a press release.
Pankaj Patwari, Managing Director at Advent International India, said “This acquisition is an important milestone towards our goal of creating a top five merchant API Platform in India and allows Advent to be present across the spectrum of generic and patented molecules, while adding marquee innovator pharma customers,” Patwari added.
Advent’s API platform resources, R&D capabilities and global reach will help Avra Labs explore new markets and products, as well as consolidate its leadership position in existing portfolio, while continuing to deliver value to customers, said Dr A V Rama Rao, founder and managing director of Avra.
Since 1990, Advent has invested $10.5 billion in 52 companies in the sector worldwide. In addition to Avra Laboratories, recent pharmaceutical and healthcare investments include GS Capsule, BioDuro-Sundia, RxBenefits, RA Chem Pharma, ZCL Chemicals, Bharat Serums and Vaccines, among others.
Advent has been investing in India since 2007. Currently, it has invested almost $2.9 billion in 18 companies.
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