In a significant move for the pharmaceutical industry, TPG, a leading global alternative asset management firm, has secured a 35% stake in SCHOTT Poonawalla from the Serum Institute of India (SII). This acquisition is part of a joint venture between SCHOTT Pharma and SII, which is aligned with the esteemed Cyrus Poonawalla Group. The investment, facilitated through TPG Growth, TPG’s growth equity platform, was made alongside Novo Holdings as a co-investor, highlighting the collaborative efforts in the healthcare sector.

Details of the Transaction

The deal is projected to finalize in the first half of 2025, after which SCHOTT Pharma will maintain a 50% ownership stake in the venture, with SII holding a smaller portion. This strategic investment not only strengthens SCHOTT Poonawalla’s market position but also underscores the growing importance of partnerships in the pharmaceutical landscape.

Historical Context of the Partnership

In August 2021, amid the challenges posed by the Covid-19 pandemic, SII acquired a 50% stake in SCHOTT Kaisha, transforming it into a 50:50 joint venture with SCHOTT Pharma. This partnership aims to enhance vaccine storage solutions, essential for the distribution of critical vaccines like Covishield. Adar Poonawalla, CEO of SII, emphasized the need to secure a reliable packaging supply chain during the pandemic, prompting this strategic acquisition.

• Investment Highlights:
  • SII has a long-standing relationship with SCHOTT, providing packaging solutions for vaccine storage.
  • SCHOTT has invested ₹600 crore over three years to establish two new manufacturing plants in Gujarat and Himachal Pradesh.
  • In 2021, SCHOTT supplied vials for over two billion vaccine doses.

Future Prospects

This transaction marks another collaborative effort between Adar Poonawalla and TPG. In December 2022, Poonawalla Fincorp, under Poonawalla’s ownership, sold its housing finance subsidiary to a TPG affiliate for ₹3,900 crore. This latest investment aims to leverage TPG’s extensive expertise in healthcare investing and global networks, which will help in scaling SCHOTT Poonawalla’s operations.

Leadership and Vision

According to Adar Poonawalla, the partnership with TPG is anticipated to foster significant growth opportunities. Bhushan Bopardikar, a business unit partner at TPG Growth, stated their commitment to enhancing SCHOTT Poonawalla’s leadership in India’s injectables-focused drug containment solutions.

In conclusion, this acquisition by TPG represents a notable shift in the pharmaceutical packaging landscape, poised to support the burgeoning needs of the healthcare sector in India and beyond. With such strategic moves, the industry can expect innovative solutions and an enhanced supply chain for critical healthcare products.