TPG Growth to pour $30 million in Indian drug maker Solara Active

The investment will help support Solara Active’s expansion in its regulated markets and is expected to close in early 2019, subject to regulatory and shareholder approval.

Renowned private equity firm, TPG Growth has recently announced plans to invest $30 million in Chennai-based active pharmaceutical ingredients (API) manufacturer, Solara Active Pharma. Reports from Moneycontrol state that the funding will support Solara Active Pharma’s expansion in regulated markets while the transaction is expected to close in early 2019 subject to regulatory and shareholder approval.

For the record, Solara Active Pharma was formed after the partition of Sequent Scientific Ltd. and Strides Shasun’s API business in April 2018. The company, which recorded sales of Rs 1,121.5 crore in FY18, effectively makes APIs of ibuprofen, praziquantel, ranitidine, sevelamer carbonat, gabapentin and nizatidine.

Reportedly, Solara Active has operations in over 40 countries, with five globally compliant plants in India. Additionally, the firm runs two R&D (research and development) centers in the country, staffed with around 150 scientists.

Credible sources state that the investment marks TPG Growth’s first investment in India specifically focused on life sciences, a booming sector where the firm is able to leverage its global healthcare portfolio and expertise to gain exclusive insights into the market, as well as its wide-spread business building capability.

Commenting on the move, Shailesh Rao, Head of TPG Growth India, said that the investment will serve as the cornerstone of the firm’s growing efforts to invest in Indian life sciences.

For the record, TPG Growth is one of the world’s largest healthcare investors, with over $13 billion in equity capital invested across the sector. In India, the company has backed Asiri Hospitals, Healthium MedTech, Manipal Hospitals, Rhea Healthcare and CTSI.

Reliable sources claim that Ankur Thadani, Vice President, TPG Growth, as part of the investment will join the Solara Board of Directors.