Glenmark Pharmaceuticals

Glenmark Pharmaceuticals Image

Region

South Asia

Country

India

Deal type

Expansion

Investment date

2002

Status date

Realised

Healthy performance, high growth

As the global population soars, diseases, ailments and viruses spread inexorably. Increasingly sophisticated medicines and technologies are needed to suppress them – in developed and emerging countries alike. Effective high-performing pharmaceutical companies are one component in securing better health standards and medical treatments across society.

When Actis invested in Glenmark in 2002 it was a small Indian-based quoted pharmaceutical company with a market leadership in branded generic formulations of dermatology. It is now one of the largest pharma companies in the world, manufacturing and supplying generics, branded formulations, APIs and new medical drugs (developed through in-house R&D) to the US and Europe.

It was Actis’ footprint across emerging markets and understanding of the healthcare industry that prompted Glenmark's management to approach us with three objectives: to grow revenues (with a healthy respect for profit margins), expand the product line and implement its overseas strategy.

During the four-year partnership, Actis worked with management to achieve these goals. We also introduced industry-standard health and safety policies, strengthened corporate governance, bringing in a board of directors with experience in law, cross-border investing, and banking, and obtained regulatory approvals for US generics resulting in significant investment interest from international investors. Building out in-house R&D infrastructure and manufacturing capability was also vital.

As well as opening up the US & European markets to Glenmark, Actis helped the business to gain exposure to Latin America and South Africa.

Actis sold its holding in Glenmark to institutional investors and listed shares on the stock exchanges when we exited in 2006-7.

This investment proved to be a landmark deal in the firm's understanding of the healthcare sector. Since then Actis has backed many healthcare providers including Sterling Add-Life, the largest hospital chain in the Gujarat province of India, Sterling Add-Life, Veeda, an Indian clinical research company, Paras, a leading health and personal care company in India, Nanjing Mirco-Tech, a manufacturer of medical devices in China and Asiri, a thriving hospital group in Sri Lanka.