Key Takeaways
- • BDR Pharma will acquire a controlling stake in the oral solid formulations business of Acme Formulation and its subsidiaries from existing shareholders led by private equity firm PAG, the company said on Monday.
- • The deal adds thyroid, female sex hormone and general pharmaceutical capabilities to BDR's contract development and manufacturing (CDMO) platform, according to the company.
- • PAG acquired a controlling stake in Acme Formulation for $145 million (₹1,054 crore) through its PAG Asia III buyout fund in 2021; PAG currently owns about 62% of the company and founder Viral Shah holds about 31%.
- • PAG and Viral Shah will retain full ownership of Immacule Lifesciences, the sterile injectable focused contract manufacturing business.
- • o3 Capital acted as exclusive financial advisor to BDR Pharma; BDR, which targets an IPO by 2027, plans to invest around ₹700 crore in organic and inorganic expansion.
Summary
Mumbai-based BDR Pharma will acquire a controlling stake in the oral solid formulations business of Acme Formulation and its subsidiaries from its existing shareholders, led by private equity firm PAG, the company said on Monday. The transaction is intended to strengthen BDR's contract development and manufacturing (CDMO) platform by adding complementary capabilities across thyroid products, female sex hormone products and general pharmaceutical products. BDR Chairman and Managing Director Dharmesh Shah said the company has built momentum through strategic investments, innovation and an expanding global ambition, and that Acme would further strengthen its CDMO platform.
ET first reported in July that BDR Pharmaceuticals was interested in acquiring Acme Formulation from PAG. PAG acquired a controlling stake in Acme Formulation for $145 million (₹1,054 crore) through its PAG Asia III buyout fund in 2021. Founder and managing director Viral Shah retained a significant minority stake and continues as managing director and CEO. PAG currently owns about 62% of the company, while Shah holds around 31%. Shah is expected to remain with the company as a minority shareholder, according to ET.
PAG and Viral Shah will retain full ownership of Immacule Lifesciences, the sterile injectable focused contract manufacturing business. The Acme group comprises Acme Formulation, Immacule Lifesciences, Acme Generics and Veritas Research. Nikhil Srivastava, Partner and Co-Head of Private Equity at PAG, said the transaction reflects the platform built with Shah and the Acme team, and that BDR is the ideal owner to take it to the next level. Viral Shah said he will work closely with BDR for a smooth transition while focusing on growing Immacule.
o3 Capital acted as exclusive financial advisor to BDR Pharma. BDR, which is targeting an IPO by 2027, plans to invest around ₹700 crore over the next few years in organic and inorganic expansion. The company licenses products to several leading pharmaceutical companies while also marketing medicines under its own brands. In 2022, a consortium led by Multiples invested ₹685 crore ($91 million) for a stake of nearly 10% in BDR.
ET first reported in July that BDR Pharmaceuticals was interested in acquiring Acme Formulation from PAG. PAG acquired a controlling stake in Acme Formulation for $145 million (₹1,054 crore) through its PAG Asia III buyout fund in 2021. Founder and managing director Viral Shah retained a significant minority stake and continues as managing director and CEO. PAG currently owns about 62% of the company, while Shah holds around 31%. Shah is expected to remain with the company as a minority shareholder, according to ET.
PAG and Viral Shah will retain full ownership of Immacule Lifesciences, the sterile injectable focused contract manufacturing business. The Acme group comprises Acme Formulation, Immacule Lifesciences, Acme Generics and Veritas Research. Nikhil Srivastava, Partner and Co-Head of Private Equity at PAG, said the transaction reflects the platform built with Shah and the Acme team, and that BDR is the ideal owner to take it to the next level. Viral Shah said he will work closely with BDR for a smooth transition while focusing on growing Immacule.
o3 Capital acted as exclusive financial advisor to BDR Pharma. BDR, which is targeting an IPO by 2027, plans to invest around ₹700 crore over the next few years in organic and inorganic expansion. The company licenses products to several leading pharmaceutical companies while also marketing medicines under its own brands. In 2022, a consortium led by Multiples invested ₹685 crore ($91 million) for a stake of nearly 10% in BDR.
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