Aragen secures $100 million funding from Quadria Capital

HYDERABAD: Contract analysis, improvement and manufacturing organisation (CRDMO) Aragen Life Science, previously often known as GVK Biosciences, has secured a $100 million (approx. Rs 865 crore) funding from healthcare targeted personal fairness fund Quadria Capital.
The deal will see Quadria, which is targeted on the Asian healthcare sector, purchase a minority stake in Aragen at an approximate valuation of US$ 1.4 bn. The funding will likely be made primarily by means of a recent capital infusion, with a small portion from the sale of shares by current buyers.
Aragen stated the funding will assist the strategic growth of its capabilities and infrastructure and can allow it to satisfy the rising demand for outsourcing companies from innovators in US and Europe.
With this, Quadria turns into the second strategic investor in Aragen after Goldman Sachs. The corporate stated the most recent funding solidifies its place within the supply of high-quality `concept-to-clinic’ and `concept-to-commercial’ companies its world clients that contains human, animal and plant well being sectors.
Aragen Life Science CEO Manni Kantipudi stated the funding marks a pivotal second as the corporate scales as much as meet the wants of a quickly evolving market. “Our expanded capabilities will enable us to assist the rising demand for built-in discovery and manufacturing companies, and, most significantly, assist our clients speed up their programmes to market quicker and extra effectively,” he stated.
Quadria Capital managing associate & co-founder Dr Amit Varma stated the PE fund determined to spend money on Aragen due to its observe file, buyer centric method and dedication to innovation that make it a super associate for world pharma corporations.
“The pharmaceutical outsourcing sector presents compelling development alternatives, particularly within the present surroundings which is pushed by world provide chain reorganization,” he stated.
The 23-year-old Aragen caters to over 400 world pharma purchasers, together with 15 of the highest 20 massive ones, with options starting from early discovery to industrial manufacturing for small molecules and biologics.
The corporate stated it’s well-positioned to learn from macro developments within the outsourcing market, with Western innovator corporations more and more searching for to diversify and safe their provide chain as a hedge in opposition to operational disruptions as a result of world components.
Quadria’s funding in Aragen follows its bets on different outsourced pharmaceutical companies corporations corresponding to Akums Medicine, which is India’s largest home targeted contract producer, Encube Ethicals, which is an India-based topicals targeted CDMO, and Straits Orthopedics, a Malaysia-based CDMO for orthopedic medical units.