PE firm Multiples picks up 9.3% stake in BDR Pharma for Rs 685 cr

Private equity firm Multiples has picked up a 9.3 per cent stake in BDR Pharmaceuticals International for Rs 685 crore. The funds will be used by the company to build additional research and development (R&D) capabilities in current and emerging areas, invest in manufacturing capacity expansion and enhance the degree of vertical integration. BDR also plans to pursue inorganic expansion using the funds raised.

Multiples is the first private equity (PE) investor in BDR Pharma. "The consortium of investors participating along with Multiples include institutional investors such as the investment arm of Times Group, QRG Invest (Havells Family Office), and high networth individuals Nishant Agarwal of Avighna Group, and Mallika Srinivasan of TAFE," the statement read.

Dheer Shah, CFO at BDR Pharma told Business Standard said, "The PE investment in BDR was chosen over debt as we believe today we are in a world of global alliances and having an astute investor such as Multiples on board with its expertise would definitely helo the company's growth journey as well as help us grow in a faster manner."

Shah further added that BDR Pharma has never taken debt in the past, has grown steadily and stands strong financially as well. "We believe that it was a good time where BDR has ripened as a company and developed to strive for the next level in which an investor with good credentials could really help the company's growth trajectory," he said.

The R&D projects BDR is working on include new delivery systems and new products to boost their pipeline. "These funds will definitely help us expedite our development in a lot of areas including product capacity, global footprint etc," Shah said.

The company will also selectively pursue inorganic opportunities to build scale.

Manish Gaur, managing director and head of Healthcare at Multiples, said, “BDR Pharma has a strong reputation for being an innovation partner of choice for leading Indian companies on the back of its excellent product development capabilities. Under the visionary leadership of Dharmesh Bhai, the Company has built a strong business in Indian as well as overseas markets."

He added that “Healthcare, as an industry is highly promising in India and Multiples, brings strong sector expertise with investments in companies across the value chain. Animal health, Formulations and Hospitals are some of the segments where we have backed companies with strong differentiation, and high-quality entrepreneurs and management teams. We will continue to explore partnering with promising enterprises in the healthcare industry."

BDR Pharma’s Chairman and MD Dharmesh Shah said, "Multiples is an active investor in the pharmaceuticals sector and has a strong track record of partnering with visionary entrepreneurs and management teams in helping them in their transformation journeys. We are looking forward to accelerating our growth journey with trusted investors having a deep understanding of the sector, and regulatory environment and who bring first-hand experience in working with innovative, high-growth companies."

BDR, established in 2003, is a partner for several Indian drug firms for innovation, manufacturing etc in therapy areas like oncology and critical care. It is now growing its presence in dermatology and gynaecology therapies.  BDR Pharma’s portfolio includes Covid-19 drugs Favipiravir, Molnupiravir and Baricitinib in India.