Kotak Alt Invests INR 1,445 Cr in Matrix Pharma for Viatris’ API Business Acquisition

Reportedly, with this acquisition, Matrix Pharma is set to become the second-largest Indian player in the API market.

Kotak Alternate Asset Managers (Kotak Alt), a division of the Kotak Mahindra Group, has made a significant investment of INR 1,445 Cr in Matrix Pharma.

This funding is directed towards Matrix Pharma’s acquisition of Viatris’ active pharmaceutical ingredients (API) business, a major US-based pharmaceutical entity.

The transaction was facilitated through Kotak Strategic Situations Fund II, highlighting Kotak Alt’s robust investment strategies and expertise in the pharmaceutical sector.

Reportedly, with this acquisition, Matrix Pharma is set to become the second-largest Indian player in the API market, gaining global leadership in antiretroviral (ARV) APIs.

The deal includes substantial research and development resources, such as a team of over 185 scientists and more than 600 Drug Master File (DMF) filings.

This positions Matrix to capitalize on established relationships with major pharmaceutical companies worldwide, supported by regulatory approvals from both the US and the European Union.

Srini Sriniwasan, MD, Kotak Alternate Asset Managers, emphasized the significance of the acquisition, stating, “This buy-out, combined with key incumbent management coming on board, highlights our strong deal sourcing and structuring capabilities. It underscores our expertise in the pharma industry and our ability to create a platform for building a robust API business through both organic and inorganic growth.”

Expanding Capabilities & Market Reach

Kotak Alt’s investment will enable Matrix Pharma to expand its third-party sales and explore new opportunities in the contract development and manufacturing organization (CDMO) space.

The infusion of funds and strategic backing underscores Kotak Alt’s capability to source and structure high-impact deals in the pharmaceutical industry.

Eshwar Karra, CEO of Kotak Strategic Situations Fund at Kotak Alternate Asset Managers, noted India’s prominent role in the global API market, saying, “India ranks as the third-largest API manufacturer globally due to its chemistry capabilities and cost-effective manufacturing. We are thrilled to support Matrix Pharma’s management and operating team in their global ambitions.”

With this strategic investment, Kotak Alt is poised to significantly influence the pharmaceutical landscape, supporting Matrix Pharma's expansion and enhancing its capabilities in the global API market.

In another acquisition development in the pharma sector, just days back, Mankind Pharma with Private Equity firms TPG, Blackstone, and EQT, along with a consortium of Warburg Pincus and ChrysCapital joined the race to acquire BSV Group, formerly Bharat Serum & Vaccines.

The acquisition value is said to be around INR 12,000-13,000 Cr ($1.4-1.5 billion), as reported by the ET. Reportedly, these five companies have been shortlisted after non-binding bids were submitted last week. In the latest update, Dr Reddy’s Laboratories may also join the race, having sought extra time to submit a bid for the Advent International portfolio company.