Pharma Czar Nimagadda aka 'Matrix' Prasad-Backed IQuest Enterprises Acquires Viatris' Indian API Biz

The financial details of the deal remain undisclosed. However, the pharmaceutical major in a regulatory filing noted that the sale of its India API operations is part of a larger global divestiture valued at $6.94 billion.

IQuest Enterprises, a Hyderabad-based investment firm, promoted by Nimmagadda Prasad, has entered into a definitive agreement to acquire the active pharmaceutical ingredients (API) business of global pharmaceutical major Viatris in India.

The financial details of the deal remain undisclosed. However, the pharmaceutical major in a regulatory filing noted that the sale of its India API operations is part of a larger global divestiture valued at $6.94 billion.

This encompasses a dozen facilities with over 6,000 employees that is equivalent to nearly 15% of its global workforce. Additionally, the transaction is expected to close in the first quarter of 2024.

According to a Times of India report, IQuest emerged as the preferred investor through a global competitive bidding process for the API operations that include six large-scale manufacturing facilities, three each of which are in Vizag and Hyderabad. It also includes a R&D facility in Hyderabad and third-party API sales.

However, Viatris clarified in a regulatory filing that they will be retaining some selective R&D capabilities in API space.

This development marks the return of Nimmagadda Prasad, popularly known as Matrix Prasad into the pharmaceutical sector after a hiatus of 17 years.

Prasad, an Andhra Pradesh-based industrialist is also the founder of Matrix Laboratories and has made significant contributions to the pharmaceutical sector. Currently, he is the chief advisor and patron of IQuest Enterprises.

Earlier, in 2006, Prasad had divested his stake in Matrix Labs into US-based generics player Mylan, which in the year 2020, merged with Upjohn, a legacy division of Pfizer, and was renamed Viatris. The newly formed global pharma, Viatris aims to improve healthcare access and sustainably delivering high-quality medicine is their relentless pursuit.

Coming back full circle, Prasad's daughter, Gunupati Swathi Reddy, executive director, IQuest, described the deal as IQuest's largest investment in the pharmaceutical sector.

The Hyderabad-based multi-sector investment company was founded in 2001, with a proven track record of pharmaceutical and healthcare investments. Promoted by the Nimmagadda Prasad's family, IQuest made some significant investments including AIG Hospitals, CARE Hospitals, and Celon Laboratories among others.

Talking about API segment, recently, India Resurgence Fund (IndiaRF) acquired Ind-Swift' Laboratories API for a whopping sum of INR 1650 Cr. The strategic deal sought to make a strong market presence and competitive cost position in the country while investing in new product development across both API and Contract Research and Manufacturing services (CRAMS).