Warburg Pincus picked up a minority stake in API maker Laurus Labs for around ₹550 crore and exited in 2020.US private equity firm Warburg Pincus is in advanced talks to acquire Mumbai-based formulations maker Integrace Health for about ₹1,200 crore, said people familiar with the matter.
Integrace is currently owned by homegrown PE fund True North and Singapore sovereign investor Temasek Holdings. True North Fund VI LLP holds a 55.83 per cent stake in Integrace, while Temasek arm V-Science Investments Pte owns 43.91 per cent.
Discussions are at a final stage, with the deal expected to be signed in a few weeks, the people said. Incorporated in August 2018, Integrace began operations with the acquisition of branded generic portfolios from Glenmark Pharmaceuticals in October that year. It bought Glenmark’s gynaecology business for ₹115 crore in cash and its orthopaedic and pain management (OPM) business in India and Nepal, valuing that transaction at ₹635 crore.
In 2021, Integrace further strengthened its gynaecology franchise by acquiring Mifegest and Cytolog from Zydus Healthcare. The company manufactures branded generics focused on OPM and gynaecology therapies across India and Nepal.
Spokespersons for True North and Warburg Pincus declined to comment.
Integrace is led by CEO Kedar Rajadnye, formerly president and COO of the consumer products division at Piramal Enterprises, who joined the company in 2018. It reported revenue of about ₹300 crore and Ebitda of ₹60-70 crore in FY26, the people said, citing latest available data.
In FY24, the OPM segment contributed 74 per cent to total revenue, followed by the gynae segment at 23 per cent.
Integrace has high dependence on key products, deriving 69 per cent of revenue from its top five products in FY24, India Ratings and Research said in a report. The top three products from its OPM portfolio contributed 45 per cent to total revenue and the top one product from the gynae portfolio contributed 12 per cent to total revenue in FY24.
Nonetheless, these products have large volumes and a stable demand environment, which mitigates product concentration risk to some extent, it said.
Integrace’s brands in the OPM segment include Lizolid and Stiloz, individually contributing 16 per cent of FY24 revenue, followed by Esoz at 13 per cent, while in the gynae segment, Mifegest was the major contributor at 12 per cent, followed by Cytolog, Fenza and Mumfer at 3 per cent each.
Warburg Pincus has been an active investor in the Indian pharmaceuticals and healthcare space. In April 2024, it bought a majority stake in Chennai-based cataract lens maker Appasamy Associates at a valuation of ₹3,000-3,200 crore. In 2022, it took about 11 per cent stake in medical devices maker Micro Life for $210 million, valuing the firm at roughly $2 billion. Earlier, in 2014, Warburg Pincus picked up a minority stake in API maker Laurus Labs for around ₹550 crore and exited in 2020.
Separately, a consortium led by Warburg Pincus and Abu Dhabi-based sovereign investor Mubadala is in advanced talks to buy a majority stake in contract manufacturer Encube Ethicals, ET reported last week.
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