Homegrown private equity (PE) player True North is scouting for acquisitions in the orthopaedics and gynaecology space to build its domestic formulations portfolio. The PE operates in this space through its portfolio company Integrace.
The PE firm is open to having co-investors, including other PE firms, to fund future acquisitions by Integrace. “In the last four-five years, we have been eyeing pharma as an area of opportunity and we are looking at several other segments – from contract manufacturing to active pharmaceutical ingredients, biosimilars and also domestic formulations,” said Satish Chander, partner, True North.
True North wanted to have a platform in the domestic formulations space, where it is the only or the largest shareholder. To build scale, it started scouting for divisions of drug firms that it could acquire. Chander said it is a fund that is focussed on control and buyouts.
Now, True North is focussed on growing Integrace by buying other products, divisions or smaller companies. Integrace is clocking a 12-15 per cent growth.
A natural extension of the orthopaedic division (which had an osteoporosis products), was the gynaecology segment as calcium supplements, among others, fit well into it. Also, neurology is another segment the PE is actively looking at as it fits well with the pain management portolio it has.
True North, however, is looking at acquiring a gynaecology division soon. It wants to have presence across the spectrum to fill prescriptions. Chander said that it is open to having a deal where it can plug the portfolio gaps that now exist.
For the next two years also, Integrace will focus on the orthopaedic and the gyanaecology segments.
It now has a 350-odd orthopaedic field force and a 180-strong gynaecology field force.
Biocon was one of the initial investments made by True North where it made 10-times returns on its investments when Biocon went public in 2003.