Creador, the Kuala Lumpur-based PE firm focused on partnering with entrepreneurs to grow businesses in South and Southeast Asia, has reportedly announced plans to monetize its investment in Ahmedabad-based pharmaceutical drug manufacturer Corona Remedies.

Sources cite that Creador will start talks with numerous PE funds to sell its 20 percent stake in Corona for Rs.400-450 crore (around $53.80 -67.2 million). Spark Capital is serving as an advisor to PE fund for the proposed stake sale. The deal is anticipated to value drug manufacturers at Rs.2000-2400 crore (USD 269-322.93 million). Meanwhile, Creador has declined to request for comment on the matter.

For the record, Corona Remedies has drugs in the therapeutic segment like orthopedic, pediatrics, nutraceuticals, gynecology, and cardio diabetic. In recent years, the Ahmedabad-based firm has expanded its footprints through several acquisitions.

In 2017, Corona had acquired four-drug brands of GlaxoSmithKline - Dilo-BM, Stelbid, Dilo-DX, and Vitneurin. Later, in 2018, the company acquired two brands of Abbott India named ‘Thyrocab’ and ‘Obimet’. Recently, the firm had acquired a minority stake in hormone API manufacturer La Chandra Pharmalab.

In 2016, Creador invested around Rs.120 crore in Corona Remedies to acquire a minority stake. Besides Corona, Creador has strong exposure in Indian pharmaceutical space through its investment in Paras Healthcare, a hospital chain focusing on the North India region.

Though every sector has been hit by the COVID-19 pandemic, it seems that the pharmaceutical sector remains the favorite investment destination of private equity funds. Credible reports estimate that the private equity deal in the pharmaceutical sector has doubled in 2020, compared with last year.

In this year, India has observed massive PE buyouts in the pharmaceuticals and healthcare sector worth USD 1.7 billion. In June, Carlyle inked a deal buy a 20 % stake in Piramal group’s pharmaceutical business for around Rs 3700 crore. It also acquired a 74 percent stake in animal health-focused pharmaceutical firm SeQuent Scientific for around Rs 1,580 crore in May.

Source credit - https://economictimes.indiatimes.com/markets/stocks/news/pe-fund-creador-to-sell-corona-remedies-stake-eye-rs-2400-cr-valuation/articleshow/78984488.cms