KKR may bid for Zydus family’s clinical research biz Cliantha

livemint.com:

MUMBAI : KKR & Co. is weighing a bid for Cliantha Research, the clinical research organization (CRO) owned by Pankaj Patel and family, the promoters of Zydus Lifesciences Ltd, two people familiar with the development said. The asking price for the asset is said to be in the range of $200 million, Mint reported in May.

Investment bank Moelis & Co. is managing the sale process on behalf of the Patel family, as Cliantha is not part of the publicly traded Zydus Lifesciences. A KKR spokesperson declined to comment.

In an April roundtable with reporters, KKR’s top executives said they expect to significantly build up their pharma and healthcare portfolio in India. “We are very active in healthcare. If you look at our pipeline today, I would say 40% of the current pipeline would be healthcare services and/or pharmaceuticals," KKR’s India chief executive Gaurav Trehan had told reporters.

Spokespeople for Moelis and the Patel family did not immediately respond to a request for comment on Thursday. CROs conduct studies and manage drug trials for pharmaceutical companies, with some also providing manufacturing services. Established in 2004, Cliantha specializes in early-phase (bioavailability/bioequivalence) clinical studies, which compare the efficacy of two different drug formulations.

The company also offers a range of other services, including first-in-man, late-phase research, respiratory, tobacco, dermatology, and consumer research, according to its website. In November, the Cliantha board approved a buyback proposal of up to ₹40 crore, according to regulatory filings. In 2005, Cliantha acquired Karmic Life Sciences, a company offering clinical trial management, clinical data management, and biostatistics services.