Advent to acquire minority stake in Felix Pharmaceuticals with $175 million investment

Advent to acquire a significant minority stake in Felix Pharmaceuticals, Ireland

Advent, a leading global private equity investor, has announced a definitive agreement to invest USD $175 million in Felix Pharmaceuticals Pvt Ltd ("Felix"), a prominent player in the global market for generic pharmaceuticals for animals.

This investment will consist of both primary and secondary components and will result in a significant minority stake. Felix is headquartered in Dublin and is recognized as one of the fastest-growing manufacturers and developers of off-patent medications for companion animals.

Felix specializes in developing, manufacturing, and supplying medications to distributors and other branded generic companies for private labelling, particularly in the United States market. With a portfolio that includes 14 approved products from the U.S. Food and Drug Administration (USFDA) and many additional products in various stages of review and development, Felix has the most extensive portfolio in the industry.

Shweta Jalan, Managing Partner at Advent, said, “Healthcare has been a long-standing focus for us, and strong parallels we see between success in human Gx globally and emerging opportunity in animal health Gx. Felix is well positioned to lead this space with its strong leadership, broad portfolio, and robust R&D and commercial capabilities. Its rapid growth and high customer satisfaction make it a differentiated platform, and we are excited to support Neeraj and the Felix team in scaling it into a global franchise.”

Pankaj Patwari, Managing Director at Advent, expressed that Felix has the potential to significantly impact the companion animal health generics market, which is still nascent, with generic players currently holding less than 10% of the market share. "This presents a long-term growth opportunity. Our extensive experience in the pharmaceutical sector allows us to provide valuable insights, and we look forward to partnering with founder Neeraj to build the premier generic animal health company worldwide," he said.

Felix was established in 2015 by Neeraj Agrawal, a former McKinsey consultant, Sir Jonathan Symonds, Chairman of GSK and a veteran of global pharmaceuticals with three decades of experience, and Dr. Shumeet Banerji, former CEO of Booz Allen.

The company has adopted a growth strategy focused on disciplined management. After receiving its first US FDA approval in 2020, which marked a crucial milestone for its expansion, Felix rapidly grew its portfolio to 14 commercialized products, with additional projects in advanced stages of development. The company has a USFDA-approved facility dedicated to oral solid formulations for animal health, with an injectable facility expected to be operational by the third quarter of 2025.

Neeraj Agrawal, Co-Founder of Felix Pharmaceuticals, remarked, “This investment represents a significant milestone in Felix’s development. In a rapidly evolving market, we sought a partner who could provide capital and comprehensive operational expertise, the right mindset, and strategic networks necessary for accelerated growth. Advent's strong track record in healthcare and pharmaceuticals, along with its active involvement in building robust businesses, gives us substantial confidence. We are thrilled to welcome them as we advance Felix into its next growth phase.”

Jon Symonds, Co-Founder of Felix Pharmaceuticals, added, “When Neeraj, Shumeet, and I founded Felix a decade ago, our goal was to create a globally competitive enterprise dedicated to companion animals. We are making great strides toward that objective, and our partnership with Advent at this critical stage will help accelerate our growth and enhance the delivery of high-quality, differentiated products to pet owners around the world.”

Guggenheim Securities served as financial advisor to Advent, while Lincoln International acted as financial advisor for Felix. Legal advisory services for the transaction were provided by JSA, Arthur Cox, and A&L Goodbody.