True North, a private equity firm, has agreed to acquire Glenmark Pharmaceuticals Ltd’s gynaecology business in India and Nepal for Rs 115 crore. The acquisition will be done through True North’s portfolio company, Integrace Pvt. Ltd. All formalities related to acquisition will be completed by March.
The acquisition is the second such engagement between True North and Glenmark. In 2018, the homegrown PE firm had agreed to acquire Glenmark’s orthopaedic and pain management business in India and Nepal, valuing the business at Rs 635 crore.
The orthopaedic business has registered “strong growth”, giving Integrace an opportunity of replicating the same in other therapies, True North said in a separate statement. It added that it is “enthusiastic” about the potential of Glenmark’ gynaecology team and brands and that it believes Integrace would be able to grow this vertical.
The latest transaction involves Glenmark brands Dubagest, Mumfer, Fenza and Milical, along with the sales and marketing team of the gynaecology division. The business accounts for less than 1% of Glenmark’s total revenue.
True North said the country’s gynaecology segment is estimated at Rs 12,500 crore and has been growing faster than the broader Indian pharmaceutical market. Glenmark’s brands operate in about 20% of the market, it said, adding that there are some fast-growing spaces that can still be explored.
Integrace CEO Kedar Rajadnye added that the gynaecology market, like the orthopedics market, is growing faster than the Indian pharmaceutical sector. He also said that Integrace aims to be among the top players in the Indian pharmaceutical sector by 2030. The company’s focus will remain on driving organic growth, but acquisitions will continue to be an important route. “We will be continuously evaluating both bolt-on acquisitions and platform buys to help us achieve our goals.”
For True North, the transactions add to its investments in the pharmaceutical and healthcare sector. Earlier this month, the PE firm had inked a deal to invest Rs 536.25 crore in biotechnology firm Biocon Ltd biosimilar unit Biocon Biologics. The company has other healthcare portfolio companies including hospital chain Aster DM Healthcare Ltd and single-specialty birthing chain Cloudnine Hospitals.
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