New York/Pune, July 10, 2006: Emcure Pharmaceuticals Limited (“Emcure” or the “Company”) and The Blackstone Group, announced today that Emcure’s Board of Directors has approved an agreement as part of which The Blackstone Group and its affiliates (“Blackstone”) would invest U.S. $50 million in the Company. No further terms were disclosed. This transaction represents Blackstone’s first investment in India after the launch of its private equity business in India in the middle of last year. The transaction is expected to close by August 2006.
Mr Humayun Dhanrajgir, Chairman of Emcure’s Board stated “The board and management of Emcure were impressed with Blackstone’s commitment to the pharmaceutical sector and their level of diligence in exploring an investment option in Emcure. The combination of Blackstone’s shareholding with the entrepreneurial skills of Satish Mehta, Managing Director and major promoter of the Company, is a watershed in the development of the Company into a leading pharmaceutical business.”
Mr. Satish Mehta, Managing Director of the Company, added, “We are excited about the positive impact Blackstone will have on our growth prospects. We evaluated various capital raising alternatives and are delighted that we have been able to conclude a deal with Blackstone who we believe will be an ideal partner for us. We look forward to their active participation in our Board and their help with strategic relationships and acquisitions given their expertise and network in the industry. Blackstone’s investment is a strong demonstration of their confidence in our management, our strategy, and our future growth plan.”
Mr. Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Limited, stated, “Blackstone’s investment in Emcure reflects our strong interest in the Indian pharmaceutical industry which we believe is well positioned to show robust domestic growth as well as benefit from increased amount of outsourcing to India. Satish has built a great business with several drivers for future growth which is supported by a high-quality and entrepreneurial management team. We believe our industry expertise and relationships with the CEOs of some of the leading pharmaceutical businesses in the world will complement the Company’s growth strategy. We look forward to working closely with Emcure in this next phase of its evolution.”
About Emcure Pharmaceuticals Limited
Emcure Pharmaceuticals Limited (www.emcure.co.in), headquartered in Pune, India, is a vertically integrated pharmaceutical company engaged in the research & development; manufacturing of APIs, branded formulations and biotech products; and marketing of these products in India and International markets. In 2006, it received US FDA approval for its solid dosages facility at Hinjwadi, Pune which manufactures solid oral formulations for the international regulated markets. With this approval, the facility has accreditation from the US FDA, UK MHRA, WHO Geneva and MCC South Africa. Emcure also has internationally compliant manufacturing facilities for injectables and APIs which are expected to receive approval for regulated markets in the near future.
About the Blackstone Group
The Blackstone Group, a global private investment and advisory firm, was founded in 1985. The firm has raised a total of more then $62 billion for alternative asset investing since its formation of which approximately $30 billion has been for private equity investing. The Private Equity Group has over 60 experienced professionals with broad sector expertise. Blackstone’s other core businesses include Private Real Estate Investing, Corporate Debt Investing, Hedge Funds, Mutual Fund Management, Private Placement, Marketable Alternative Asset Management, and Investment Banking Advisory Services. Further information is available at www.blackstone.com.