Adar Poonawalla's Serum Institute to Sell Stake in SCHOTT Poonawalla to TPG

Adar Poonawalla-led Serum Institute of India (SII) is selling its 35% stake in its joint venture with German specialty glass firm SCHOTT AG to American private equity firm TPG. Established in 1990, SCHOTT Poonawalla is a 50:50 venture between SCHOTT Pharma AG & Co. KGaA (Germany) and the Serum Institute of India. The company manufactures tubular glass pharmaceutical containers, including vials, syringes, ampoules, and cartridges.

The investment is being led by TPG Growth, the middle-market and growth equity platform of TPG, with Novo Holdings participating as a co-investor. Reports suggest the deal is valued at around $300 million. Following the transaction, SII will retain a minority stake in the company.

“Partnering with TPG marks an important step for us. Their experience in healthcare investing and global network make them a strong partner as we scale and explore new opportunities. Our collaboration with SCHOTT Pharma will continue, ensuring supply chain resilience and advancing innovation in vaccine packaging and delivery,” said Adar Poonawalla, CEO of Serum Institute of India, in a press release.

The strategic partnership with TPG is expected to drive the next phase of growth for the joint venture. The company’s product portfolio includes cartridges for auto-injector pens, prefillable syringes for a wide range of biologics, vials, ampoules, as well as regulatory services for biotech and pharmaceutical companies, and Contract Development and Manufacturing Organizations (CDMOs).

“On the back of world-class manufacturing infrastructure in India, SCHOTT Poonawalla has developed an industry-leading reputation by offering a comprehensive product portfolio of the highest quality for over two decades. We look forward to partnering with the senior leadership team as they continue to innovate and improve the quality and standards of pharmaceutical drug containment solutions,” said Bhushan Bopardikar, Business Unit Partner at TPG Growth.

The transaction is subject to customary closing conditions and is expected to be completed in the first half of 2025. Jefferies acted as the financial advisor to TPG. AZB & Partners served as legal advisors to TPG and SCHOTT Pharma, while J. Sagar Associates (JSA) advised Serum Institute.

Three and a half years ago, TPG Growth’s India arm, led by Ankur Thadani, invested $125 million in OneSource Speciality Pharma (formerly Stelis Biopharma), which provides development and manufacturing services for injectables and biologics. TPG Growth also backs Dr. Agarwal’s Healthcare, Nova IVF Fertility, and Motherhood Hospitals.

Meanwhile, in August 2021, Serum Institute acquired a 50% stake in SCHOTT Kaisha, a pharma packaging company, from its former co-owners. More recently, Adar Poonawalla’s Serene Production acquired a 50% stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment for Rs 1,000 crore.