Mubadala is continuing its push into pharma by partnering with US-based private equity firm Warburg Pincus to acquire Mumbai-based Encube Ethicals, with the duo emerging as frontrunners to secure up to 74% of the firm, The Economic Times reports, citing sources it says are familiar with the matter. The potential transaction would value the pharma firm at INR 165 bn (USD 1.8 bn).

The details: Singapore’s private equity firm Quadria Capital, which holds a 14.9% stake, is expected to offload its entire stake. Promoters Mehul Shah and his family, who own about 84.2% of the firm, will also sell a significant portion of their holding. Sweden’s buyout firm EQT is the only other serious contender ahead of binding bids next week.

About the company: Encube, founded in 1998, is a topical-focused pharma contract manufacturer developing brands such as Soframycin. It operates three manufacturing plants in India and holds approvals from 12 global regulators, including the US Food and Drug Administration. About half its revenue comes from contract manufacturing, with the rest coming from the India and US markets.

Why this matters

Mubadala has been expanding its presence in biotech and healthcare through its specialized pharma unit Mubadala Bio, with a clear focus on biotech investments. The sovereign wealth fund led a USD 36.5 mn Series D investment in nutri-tech firm L-Nutra, made a sizable reinvestment in US pharma manufacturer PCI Pharma Services, and participated in a USD 183 mn Series C financing round for US biotech ElectraTherapeutics.

Why India? The move also comes as the US BioSecure Act, which forces American drugmakers to decouple from Chinese manufacturers in favor of “trusted” partners like India, makes Indian firms more attractive, especially to investors like Mubadala with strong ties to the US.

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