Koye Pharma next on Warburg's health play

Synopsis

Global private equity fund Warburg Pincus is nearing a deal to buy Koye Pharma. The Mumbai-based drugmaker focuses on women's health, respiratory care, and anti-diabetes drugs. This acquisition, valued at approximately ₹300 crore, marks Warburg Pincus's third investment in India's growing medicine market. Koye Pharma has shown strong growth recently, with sales around ₹160 crore.

Mumbai: Global private equity fund Warburg Pincus is in advanced discussions to acquire Mumbai-based Koye Pharma, a drugmaker that has built its presence across women's health, respiratory care, and anti-diabetes drugs, besides consumer health and medical devices.

"The deal for Koye may be signed at roughly ₹300 crore," a person aware of the development told ET.

Currently, Koye is owned by Aries Holdings, a healthcare-focused fund launched by Chinta Bhagat, the former Asia head of L Catterton.

Founded in 2013 by pharma marketing veterans Preetish Toraskar and Ravindra Shenoy, Koye Pharma was initially backed by Sequoia Capital (now Peak XV Partners). "It has over 1250 medical representatives and after a prolonged phase of struggle is lately showing strong growth traction," an industry executive told ET, adding Koye's sales is in the range of ₹160 crore, growing at par with the industry average of 10-11%.

For FY24-25, the company posted a revenue of ₹144 crore, according to Tracxn.

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For Warburg Pincus, Koye counts as the third company after Integrace Health and Maneesh Pharma for acquisitions as it attempts to string together a platform with a band of small and medium-sized companies for a play in the growing $25 billion market for medicines in India. Integrace Health is controlled by leading investors such as Temasek and True North. Warburg Pincus is in advanced discussions to acquire the non-TB formulations business of Mumbai-headquartered Maneesh Pharmaceuticals in a deal valued at around ₹1,600-1,800 crore, ET reported last week.

Aries Holdings spokesperson declined to comment while queries to Warburg went unanswered.

Industry experts noted the move is well-timed since mid-size companies are facing competitive heat from larger peers.

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