PE-VC investments in pharma grow 38% in H1

The year saw some major deals, with firms like Intas Pharma raising $106 mn in April

The first half of 2017 has seen a 38 per cent jump in private equity and venture capital (PE-VC) investments in the pharmaceutical sector, compared to the year-ago period. 

The year has seen some major deals in this sector, with players like Intas Pharmaceuticals raising $106 million from Capital International in April. 

In all, seven deals involving an investment of $177 million took place during this period, compared to five deals in H12016 with a value of $128 million. As the PE-VC interest in the pharma space heats up, secondary deals are taking place. Capital International picked up ChrysCapital LLC’s partial stake in Intas for $106 million (about Rs 690 crore). A source close to the development said this amounted to around 3 per cent stake in the company, which is currently valued at Rs 23,000 crore. ChrysCapital would continue to hold around 3 per cent stake in the company. 

Intas is a good example that explains the PE-VC interest in pharmaceuticals peaking in recent years. “ChrysCapital had acquired an 11 per cent stake in Intas for Rs 50 crore more than a decade back.