Strategic Investment in Aragen Life Sciences

BENGALURU: In a significant move, Avendus Future Leaders Fund (FLF) III, alongside SBI Life Insurance, has co-led a Rs 300 crore investment in Aragen Life Sciences, a Hyderabad-based contract research, development, and manufacturing organisation (CRDMO). This fully secondary deal involves acquiring over 2.5% from the GVK Group’s Reddy family’s stake in Aragen.

Why This Investment Matters

This transaction marks FLF III’s second investment this year, following La Renon Healthcare. It underscores the growing interest in the CRDMO sector, especially as global pharmaceutical companies seek to diversify R&D and manufacturing away from China. Aragen's dual capability in small molecules and biologics positions it as a unique player in the field.

Aragen's Growth and Capabilities

Founded in 2001, Aragen has evolved into a fully integrated player in the pharmaceutical industry, from early discovery to commercial manufacturing. With a new biologics manufacturing facility in Bengaluru and a high potent manufacturing unit in Hyderabad set to open, Aragen is poised for significant growth. CEO Manni Kantipudi highlights the company's unique position in both small molecules and biologics, a rarity in India.

Looking Ahead

With 50% of its revenue from drug discovery research and a strong presence in the US and Europe, Aragen is at the forefront of the shift towards biologics in the pharmaceutical industry. Avendus's investment strategy, focusing on nimble, minority positions, reflects confidence in Aragen's potential for future liquidity events.