Warburg Pincus in Advanced Talks to Acquire Integrace Health for INR 1,200 Cr

Integrace Health is currently owned by homegrown PE fund True North and Singapore sovereign investor Temasek Holdings.

US private equity firm Warburg Pincus is in advanced discussions to acquire Mumbai-based formulations maker Integrace Health for approximately ₹1,200 crore, people familiar with the matter said.

Integrace Health is currently owned by homegrown PE fund True North and Singapore sovereign investor Temasek Holdings.

True North Fund VI LLP holds a 55.83% stake, while Temasek’s V-Science Investments Pte owns 43.91%. Discussions are reportedly at a final stage, with the deal expected to be signed in the coming weeks, the sources added.

Incorporated in August 2018, Integrace began operations by acquiring branded generic portfolios from Glenmark Pharmaceuticals. The company purchased Glenmark's gynaecology business for ₹115 crore and its orthopaedic and pain management (OPM) business in India and Nepal for ₹635 crore.

In 2021, Integrace expanded its gynaecology portfolio by acquiring Mifegest and Cytolog from Zydus Healthcare. The company manufactures branded generics focused on OPM and gynaecology therapies across India and Nepal.

Integrace is led by CEO Kedar Rajadnye, former president and COO of the consumer products division at Piramal Enterprises, who joined the company in 2018. The company reported revenue of about ₹300 crore and an EBITDA of ₹60-70 crore in FY26, according to the latest available data.

In FY24, the OPM segment contributed 74% to total revenue, followed by gynaecology at 23%. The top five products accounted for 69% of revenue.

Key OPM brands include Lizolid and Stiloz, contributing 16% and 13% of FY24 revenue respectively, while in the gynaecology segment, Mifegest led with 12%, followed by Cytolog, Fenza, and Mumfer at 3% each. India Ratings and Research noted that high volumes and stable demand mitigate product concentration risk to some extent.

Warburg Pincus has been an active investor in India’s pharmaceuticals and healthcare sector. In April 2024, it acquired a majority stake in Chennai-based cataract lens maker Appasamy Associates at a valuation of ₹3,000-3,200 crore.

In 2022, it purchased an 11% stake in medical devices maker Micro Life for $210 million. 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 also in advanced talks to acquire a majority stake in contract manufacturer Encube Ethicals, ET reported last week.

Spokespersons for True North and Warburg Pincus declined to comment on the transaction.

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