Kotak Alt invests Rs 1,445 cr to acquire Viatris API biz for Matrix Pharma

Kotak Alternate Asset Managers (Kotak Alt), a part of the Kotak Mahindra Group, has invested Rs 1,445 crore in Matrix Pharma for its acquisition of US-based pharmaceutical major Viatris’ API business.

This transaction was executed through Kotak Strategic Situations Fund II.

This acquisition will make Matrix the second-largest Indian active pharmaceutical ingredients (API) player with global leadership in antiretroviral (ARV) APIs.

The deal grants Matrix access to extensive research and development capabilities, including a team of over 185 scientists and more than 600 Drug Master File (DMF) filings.

With regulatory approvals from both the US and EU, Matrix is set to leverage its established relationships with major global pharmaceutical companies. 

Kotak Alt’s support will enable Matrix to bolster its third-party sales and explore further opportunities in the pharmaceutical contract development and manufacturing organisation (CDMO) space.

“This buy-out of a significant business along with key incumbent management coming on board demonstrates Kotak Alt’s strong deal sourcing and structuring capabilities. It underscores our pharma industry expertise and our ability to create a platform for building a robust API business, which we can support through both organic and inorganic growth,” said Srini Sriniwasan, Managing Director of Kotak Alternate Asset Managers.

Eshwar Karra, CEO of Kotak Strategic Situations Fund at Kotak Alternate Asset Managers, highlighted India’s position in the global API market.

“India is the third largest API manufacturer in the world, thanks to its chemistry capabilities and cost-competitive manufacturing. We are delighted to back the management and operating team to support their global ambitions,” he said.

Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd