The first half of 2017 has seen a 38 percent jump in private equity and venture capital (PE-VC) investments in the pharmaceutical sector, compared to the year-ago period.
The year has seen some major deals in this sector, with players like Intas Pharmaceuticals raising USD 106 million from Capital International in April.
In all, seven deals involving an investment of USD 177 million took place during this period, compared to five deals in H12016 with a value of USD 128 million. As the PE-VC interest in the pharma space heats up, secondary deals are taking place. Capital International picked up ChrysCapital LLC’s partial stake in Intas for USD 106 million (about Rs 690 crore). A source close to the development said this amounted to around 3 percent stake in the company, which is currently valued at Rs 23,000 crore. ChrysCapital would continue to hold around 3 percent stake in the company.
Intas is a good example that explains the PE-VC interest in pharmaceuticals peaking in recent years. “ChrysCapital had acquired an 11 percent stake in Intas for Rs 50 crore more than a decade back. – Business Standard