Kotak Alternate Asset Managers invests Rs 1,445 cr to help Matrix Pharma execute acquisition

Kotak Alternate Asset Managers Ltd on Tuesday said it has invested Rs 1,445 crore in Matrix Pharma through a combination of debt and equity to help the pharmaceutical company execute an acquisition. Post-acquisition of the active pharmaceutical ingredient (API) business of Vaitris, Matrix will become the second largest Indian API player with global leadership in antiretroviral (ARV) APIs, as per an official statement. Matrix will also gain access to strong research and development capabilities, including over 185 scientists and 600 DMF (drug master file) filings. With regulatory approvals for the US and EU, it will be able to leverage its long-standing relationships with global pharma majors.

“Kotak Alt will enable Matrix to consolidate its leadership in the API business by strengthening its third-party sales and will selectively evaluate inorganic opportunities in the pharma contract development and manufacturing organization (CDMO) space,” the statement added.

Kotak Alt’s managing director Srini Sriniwasan said the transaction should be seen as being demonstrative of the entity’s deal sourcing and structuring abilities, and also its strength in the pharma sector.

Eshwar Karra, the chief executive of Kotak Alt entity Kotak Strategic Situations Fund, said it will support the global ambitions of the team and added that India is the 3rd largest API manufacturer in the world given its chemistry capabilities and cost- competitive manufacturing.