Written by : Jayati Dubey
January 14, 2025
The investment is aimed at bolstering Aragen’s capabilities and infrastructure to meet the rising demand for outsourcing services from pharmaceutical innovators in the U.S. and Europe.
Hyderabad-based Aragen Life Sciences, a global Contract Research, Development, and Manufacturing Organisation (CRDMO), has received a $100 million investment from Quadria Capital, an Asia-focused healthcare private equity fund.
The deal, which values Aragen at approximately $1.4 billion, involves Quadria acquiring a minority stake through a combination of fresh capital infusion and partial share sales by existing investors.
The investment is aimed at bolstering Aragen’s capabilities and infrastructure to meet the rising demand for outsourcing services from pharmaceutical innovators in the US and Europe.
This move aligns with Western pharmaceutical companies' efforts to diversify supply chains and mitigate risks stemming from global disruptions.
“This investment will help us scale to address market needs. Expanding our capabilities will enable us to support the demand for integrated discovery and manufacturing services and help our customers bring their programs to market more efficiently,” said Manni Kantipudi, CEO of Aragen Life Sciences.
Aragen provides end-to-end services spanning drug discovery and commercial manufacturing for small molecules and biologics.
The company works with over 400 global clients, including 15 of the top 20 pharmaceutical firms, across human, animal, and plant health sectors.
The announcement comes ahead of the JPMorgan Healthcare Conference Week 2025, where Aragen is expected to forge additional outsourcing partnerships.
The pharmaceutical outsourcing sector has experienced significant growth due to supply chain restructuring and cost management efforts in drug development.
Dr Amit Varma, Managing Partner and Co-Founder of Quadria Capital highlighted the sector's growth opportunities, said, “The pharmaceutical outsourcing sector offers growth opportunities, particularly in the context of supply chain reorganization. Aragen’s track record, approach to customer needs, and focus on innovation make it a suitable partner for pharmaceutical companies.”
Quadria Capital has an extensive healthcare portfolio, including investments in Akums Drugs, a domestic contract manufacturer; Encube Ethicals, a leader in topical formulations; and Straits Orthopaedics, a Malaysia-based CDMO for orthopedic medical devices.
With this latest investment, Quadria Capital joins Goldman Sachs as an investor in Aragen, further solidifying the company’s position in the pharmaceutical outsourcing market.
The partnership is expected to drive Aragen’s infrastructure and service enhancements, strengthening its role as a leading CRDMO globally.
Aragen’s robust service offerings and global client base position it to capitalize on the growing demand for outsourcing solutions.
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