Carlyle partners with Viyash Life Sciences to build Generic Pharmaceutical Platform in India
Follow-on investments made by Viyash in Symed Labs and Appco Pharma LLC
Mumbai – Global investment firm Carlyle (NASDAQ: CG) and seasoned pharmaceutical professionals Dr. Hari Babu and Dr. Srihari Raju Kalidindi, founder and co-founder of Viyash Life Sciences Private Limited (“Viyash”), today announced that CA Hull Investments, an affiliated entity of CAP V Mauritius Limited and Carlyle (collectively, “Carlyle”) and Viyash have established an integrated generic pharmaceutical platform in India.
Viyash was set-up by Dr. Hari Babu in partnership with Dr. Srihari Raju Kalidindi. Viyash is a leading manufacturer of API (active pharmaceutical ingredients) intermediates with a strategy to consolidate other pharma intermediates, API and formulation assets to create an integrated offering for large generics customers. Dr. Hari Babu was previously Global COO of multinational pharmaceutical company Mylan and CEO of Mylan India, while Dr. Srihari co-founded and was previously the Executive Director of Indian pharmaceutical company Laurus Laboratories.
Carlyle commenced its partnership with Viyash in June 2021, when the company acquired a controlling stake in Symed Labs, a leading manufacturer of niche APIs to enable backward integration. Viyash has also acquired a controlling stake in Appco Pharma LLC, US, a formulations player focused on the US market which will help expand access to US generics market and formulation capabilities.
With these acquisitions, Viyash has ten manufacturing facilities in India with a combined capacity of ~2000 KL as well as one formulation facility in US, and is now one of India’s leading mid-tier integrated API and formulation players. The majority of the sites are US FDA approved for API or Intermediates and are capable of servicing both regulated and semi-regulated markets. In the future Viyash intends to seek further investment opportunities to build scale by targeting acquisitions with niche differentiated capabilities that complement the existing operations of the platform. It will focus on both regulated and emerging markets for generics supply.
Neeraj Bharadwaj, Co-head - Asia Healthcare and India, Carlyle Asia Partners, commented, “As the largest provider of generics in the world, India has solidified its position as a pharma hub. There continues to be significant potential in the market which we believe can be captured through targeted consolidation of complementary players in the generics industry. We are excited to be combining the expert guidance of Dr. Hari and Dr. Srihari, who along with the management team have a proven track record of integrating assets and running large global companies, with Carlyle’s significant sector expertise both in India and globally.“
Dr. Hari CEO, Viyash platform, commented, “We are delighted to partner with Carlyle at this exciting time for the Indian pharma industry. Viyash will focus on providing global formulation players with end to end manufacturing capabilities. Our next phase will be to drive further integration and growth opportunities across the three businesses.”
“Carlyle’s global healthcare expertise and network of portfolio companies, coupled with our industry knowledge and experience, will help us create significant value for the platform,” added Dr. Srihari, COO of the integrated platform.
India’s generic pharma industry is experiencing strong secular growth, and is expected to gain greater share within the global market. India’s growth is supported by its strong manufacturing and R&D capabilities, skilled technical workforce, and high proportion of FDA approved facilities.
Carlyle has a well-established history of investing in the healthcare sector, both in India and globally, fueled by a deep understanding of the market and an ability to create value through its operational expertise and close partnerships with management. Carlyle has invested more than US$14.7 billion of equity in over 80 deals in the global healthcare sector as of September 30, 2021.
Its healthcare investments in India include SeQuent Scientific, Piramal Pharma, Indegene, Metropolis, Medanta and Visionary RCM Infotech.
Citadel Management Consulting, a Hyderabad based advisory firm, acted as an advisor to Carlyle.
Notes to editors
Carlyle is a long-standing global investment firm with operations in India. With global resources, deep industry expertise and strong local knowledge, the firm has invested and committed more than US$5.5 billion across 44 transactions In India as of September 30, 2021.
Carlyle has consistently demonstrated itself over the last two decades of investing in India to be a trusted partner for India and its business community, with a long track record of investing into industry sectors in India including healthcare, pharma and financial services. Carlyle portfolio companies today employ 300,000+ Indian employees, agents and contractors.
About The Carlyle Group
Carlyle (NASDAQ:CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $293 billion of assets under management as of September 30, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
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