CRDMO Aragen has secured a USD $100m investment from healthcare private equity firm Quadria Capital.
Through this deal, Quadria will acquire a minority stake in Aragen, which is currently valued at approximately $1.4bn.
The funding will assist Aragen in expanding its global infrastructure, as well as its R&D and manufacturing capabilities, which will allow the company to meet the current global demands for outsourcing within the key US and European markets.
Quadria is now the second financial firm to strategically invest in Aragen, as Goldman Sachs chose to acquire a significant minority stake in the company back in 2021.
Aragen will now aim to deliver its concept to clinic and concept to commercial services to its global customer base, while also fostering partnerships with new clients.
“We are delighted to welcome Quadria to Aragen. This investment marks a pivotal moment as we scale to meet the needs of a rapidly evolving market,” said Manni Kantipudi, CEO, Aragen Life Science.
“Our expanded capabilities will allow us to support the rising demand for integrated discovery and manufacturing services and, most importantly, help our customers accelerate their programs to market faster and more efficiently.”
For the 23 years it has operated, Aragen has been well-positioned to benefit from macro trends in the outsourcing market, with Western innovator companies seeking to diversify and secure their supply chain to avoid operational disruptions.
The company now has more than 400 clients, including 15 of the top 20 pharma companies.
Dr Amit Varma, Managing Partner and co-Founder of Quadria Capital, added: "The pharmaceutical outsourcing sector presents compelling growth opportunities, especially in the current environment which is driven by global supply chain reorganization. Aragen's impressive track record, customer-centric approach, and commitment to innovation make it an ideal partner for global pharmaceutical companies. We look forward to partnering with them and supporting their next phase of growth."