Private equity firm Carlyle is in talks with promoters of Mumbai-based BDR Pharma to invest $100 million in the drug company, the funding for which is expected to be used in expanding the company’s operations, according to people aware of the development.
BDR Pharma which manufactures drugs across therapy areas such as oncology, critical care and gynaecology is looking to expand its business into new geographies. “It is true that we are in talks with investors to raise money”, said Dharmesh Shah, MD, BDR Pharma to ET in a telephonic conversation. “We have been debt-free company,” Shah added, and said,“ the company will be going for aggressive expansion by making investments worth $70million in developing infrastructure of the company.
An email sent to Carlyle remained unanswered. According to sources, BDR is being valued at $700 million.
BDR clocked Rs 550-600 crore in revenue and around Rs 120 crore in FY18 EBITDA.
BDR Pharma rose to fame for its patent challenges against MNC drug makers in the areas of oncology. Couple of years ago the company had filed a compulsory licence against US drug maker Bristol Myers Squibb for its anti-cancer drug Dasatinib, which the patent office had rejected.
India’s pharma market though reeling under pressures of price cuts has seen a nearly 12% growth showing signs of recovery. For PE players like Carlyle, it is this growth in Indian pharma market that holds the attraction, according to industry sources. Last year Ahmedabad-based Torrent Pharma acquired the domestic formulations business of Unichem Pharma for Rs 3,600 crore to get access to a range of Unichem’s products in areas of diabetes and central nervous system.
