Maiva Pharma Bags INR 1,000 Cr from Morgan Stanley, India Life Sciences Fund

The freshly infused funds will be utilized to set up a new manufacturing facility near Hosur, India.

Tamil Nadu-based Maiva Pharma has raised INR 1,000 Cr in primary and secondary funding from a fund managed by Morgan Stanley Private Equity Asia and India Life Sciences Fund – IV (ILSF – IV).

Both Morgan Stanley and India Life Sciences have jointly acquired a controlling stake from existing investors and infused primary capital into the pharmaceutical.

According to the pharmaceutical company, this is Maiva’s first private equity fundraise.

Capital Utilization Strategy

The freshly infused funds will be utilized to set up a new manufacturing facility near Hosur, India, with capabilities in sterile dosage forms including pre-filled syringes, bags, oncology, and hormonal injectables.

Sharing thoughts, Nirav Mehta, MD & cohead, Morgan Stanley Private Equity Asia said, “We believe that the injectables CDMO market is poised for strong growth and Maiva is well positioned to emerge as one of the leading independent players supplying to regulated markets.”

Moreover, this fundraise will be used to add more vials, lyophilization, and suspension capacity and introduce new manufacturing capabilities such as prefilled syringes, and cartridges.

Avendus acted as the exclusive financial advisor to Maiva and its shareholders on this transaction.

On the investment, Sumit Gupta, MD, Investment Manager, India Life Sciences Fund IV (InvAscent) said, “Complex injectables development and manufacturing capability, strong compliance and regulatory standards along with transparency and leadership, differentiate Maiva from its competitors. We are delighted to partner with Maiva in its vision to become a global leader in sterile injectables.”

Founded in 1996, by Dr Bhaskar Krishna, the Tamil Nadu-based Pharmaceutical specializes in Sterile Injectables. The company has a US FDA, EU GMP, and ANVISA-approved state-of-the-art manufacturing facility located at Hosur.

Maiva Pharma aims to help customers accelerate time to market, reduce development costs, and provide flexibility to manufacture parenteral drug products in liquid and lyophilized dosage forms.

The company plans to use the proceeds from its recent funding to set up a new manufacturing plant near Hosur, Karnataka, with capabilities in sterile dosage forms including pre-filled syringes, bags, oncology, and hormonal injectables.

In Sept 2023, Morgan Stanley, a global financial powerhouse, acquired a majority stake in Gurugram-based ClearMedi Healthcare, marking its debut in Indian healthcare.

As part of Morgan Stanley's acquisition of ClearMedi Healthcare, the holding company will receive a controlling stake valued at approximately $35 million (INR 285 Cr).

The deal involved the purchase of a majority stake from Italy's KOS Group and a fresh equity injection into the company.

Morgan Stanley is a renowned American multinational investment bank and financial services company. It was founded by partners of J P Morgan & Co., including Henry Sturgis Morgan and Harold Stanley, in 1935.

On the other hand, India Life Sciences Fund was established in 2006. The fund is managed by InvAscent and is sponsored by Evolvence Capital. India Life Sciences Fund provides growth capital to established companies in the healthcare, health tech, and life science sectors.