Asian Private Equity Giant PAG To Invest Up To $200 Million In Indian Drugmaker

Hong Kong-based PAG is investing as much as $200 million in Indian drugmaker RK Pharma, the latest deal by the Asian private equity giant in the world’s most populous country and the fastest-growing major economy.

RK Pharma, which is based in the U.S. with operations in India, is a pharmaceutical company with a “particular focus on complex injectables,” the company said in a statement Tuesday. Founded in 2018 by Ravishanker Kovi, RK Pharma’s products include mitomycin injection vials, a cancer drug.

“This transformative investment by PAG would help ensure that RK Pharma can accelerate its growth plans, partnerships, and develop/launch further innovative medicines for the benefit of patients; and strengthen RK Pharma’s position as a leading fully vertically integrated specialty injectable and ophthalmic pharmaceutical company,” Kovi, who serves as chairman of RK Pharma, said in the statement.

Vijay Datt, CEO of Citadel Management Consulting, which is serving as financial adviser on the deal, said, “PAG’s strategic investment is a massive endorsement of RK’s strong R&D capabilities and unique positioning in the broader injectable CDMO space,” referring to contract development and manufacturing organization.

RK Pharma is PAG’s fifth India-focused private equity deal in recent years. Other investments include Nuvama, India’s second-largest independent wealth manager, and Acme Formulation, a leader in CDMO pharmaceuticals. Last year, PAG acquired Indian pharmaceutical company Optimus Drugs. In the last few years, PAG has invested more than $1.5 billion in India, according to the statement.

PAG is led by private equity maven Weijian Shan, who serves as chairman. The firm manages $50 billion in assets and has invested more than $70 billion, mostly in Asia. In January, PAG formed a joint venture with Temasek-owned real estate developer Mapletree Investments to buy the Goldin Financial Global Centre office tower in Hong Kong, which used to be owned by former Chinese billionaire Pan Sutong, for $713 million. In August last year, PAG agreed to acquire Huis Ten Bosch, one of Japan’s largest theme park operators, for about $720 million.