AGIC enters US market with pharma deal

The European-Asian fund has sealed its first US deal, the fourth investment from its $1 billion debut fund.

AGIC Capital has announced its entry into the US market by leading a co-investment in South Carolina-based pharmaceutical business Ritedose.

The European-Asian fund, which counts China’s $814 billion sovereign wealth fund, China Investment Corporation, among its investors, served as majority equity investor for a consortium that has agreed to acquire pharmaceutical packaging manufacturer from Olympus Partners for between $600 million and $800 million.

AGIC was joined in the consortium by Chinese healthcare solution provider Humanwell as a minority investor. The acquisition comprised 60 percent equity and 40 percent debt.

“With the investment and management support from AGIC’s healthcare team, Ritedose will be able to navigate through the regulatory approvals it needs to accelerate its expansion in the US and move into new markets in Europe and Asia, in particular China and Japan where demand for BFS in respiratory medicine is increasing,” Sam Sun, managing director and head of Greater China for AGIC, said in a statement.

The pharmaceutical packaging market was valued at $65.55 billion in 2015, according to a report by Market and Markets. It is projected to reach $94.93 billion by 2021, at a compound annual growth rate of 6.4 percent from 2016 to 2021.

AGIC Capital closed its debut fund in December 2016 after raising $1 billion. The firm focuses on fast-growing companies in Europe and the US.

Ritedose marks AGIC’s second investment in the healthcare sector, following the acquisition of Fotona in April 2017. The deal is the fund’s fourth investment overall.

As of Q1 2017, the fund was managed by investment professionals out of its offices in Munich, Beijing, Shanghai and Hong Kong, and London.