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Acquisition of Adroit USA Inc. (and its Indian manufacturing subsidiary – AUSA Medical Devices Private Limited) by Medical Device, Inc.

JSA acted as Indian legal counsel to Adroit USA Inc., its wholly owned subsidiary – AUSA Medical Devices Private Limited and their promoters, in connection with the 100% sale of Adroit USA Inc. and AUSA Medical Devices Private Limited to Medical Device, Inc. (an entity set up by Arterex for the purposes of the acquisition).

Arterex is a leading global medical device developer and contract manufacturer. Adroit USA Inc. provides custom, value added, turnkey solutions to the medical device industry and offers solutions to businesses of all sizes, from startups to Fortune 500 companies. The company has two ISO 13485-certified facilities in Bangalore, India, that provide various capabilities for complete medical device manufacturing.

Our transaction team comprised, Lead Partner – Sidharrth Shankar, Partner – Nandini Seth, Principal Associate – Aditya Vardhan Dayal, Senior Associate – Rupaly Middha, and Associate – Pranav Rao N.

Our taxation team comprised, Partner and Head of Practice, Direct Tax – Kumarmanglam Vijay, Partner and Head of Practice, Indirect Tax – Manish Mishra, Partner – Surajkumar Shetty, Of-Counsel – Ankur Mittal, Senior Associate – Divyam Mittal, Associate – Dhwani Vyas, and Principal Consultant – Ruchita Modi.

Our competition team comprised, Partner and Chair, Competition Law – Nisha Kaur Uberoi, Partner – Harshita Parmar, and Principal Associate – Rahat Dhawan.

JSA advised Blue Earth Capital AG in its investment in Apex Kidney Care Private Limited.

JSA advised Blue Earth Capital AG (Blue Earth) in relation to its proposed acquisition of stake in Apex Kidney Care Private Limited (Apex) from existing investors for approx. USD 9 Million. Apex is a leading service provider of kidney care and runs a chain of dialysis centers across different cities in India.

Deal Value: Approx USD 9 million

Our transaction team comprised Lead Partner – Lalit Kumar, Partner – Amandeep Singh Virk, Senior Associate – Zarish Ali, Associates – Ruchika, Sameer Dahiya and Muskaan Gupta.

Somerset Indus Capital’s investment in Cyrix Healthcare

JSA advised Somerset Indus Capital on picking up a significant minority stake in Kochi-based healthcare solutions provider Cyrix Healthcare. The transaction involved primary investments to aid the company’s expansion and secondary acquisition to give some liquidity to the company’s founders.

Our Transaction Team Comprised Lead Partner – Siddharth Mody, Partner – Anurag Shrivastav and Senior Associate – Alister Sequeira.

Avendus Future Leaders Fund II including certain other investors acquire stake in Sagility India ahead of its IPO

JSA advised Avendus Future Leaders Fund II (Avendus) and certain other investors in relation to their acquisition of a part of the promoter’s stake (i.e., Sagility B.V., an affiliate of EQT Private Capital Asia) in Sagility India Limited (Sagility India).

The initial public offering (IPO) of Sagility India was recently opened, and the above stake sale of the promoter to the investors (which included Avendus, Adani Properties Private Limited, Elpro International Limited etc.) was undertaken ahead of the opening of Sagility India’s IPO.

Sagility India is engaged in providing technology enabled healthcare solutions and services to payers (U.S. health insurance companies) as well as providers (hospitals, physicians, and diagnostic and medical devices companies), encompassing their operational and administrative functions, clinical services and revenue cycle management services.

Our transaction team comprises Lead Partner – Sidharrth Shankar, Partner – Prakriti Jaiswal, Senior Associate – Rishika Agarwal, and Associate – Mahi Jaiswal.

Prakriti Jaiswal | Pharmaceutical Sector in India

Tune into this episode of our podcast series featuring our Partner, Prakriti Jaiswal, as we explore the regulatory and compliance landscape in the Indian healthcare sector. From FDI regulations in pharma to quality standards and pricing challenges, this episode offers key insights into the hurdles and opportunities faced by the industry.

Watch now to stay informed about India’s evolving healthcare sector!

Transcript:

Hello and welcome to the first episode of our podcast series aimed at exploring the regulatory and compliance aspects of the Indian healthcare sector.

As we know – India stands as one of the world’s largest producers and exporters of generic medicines, playing a pivotal role in the global pharma supply chain, valued at around 50 billion dollars.

Foreign Direct Investment in India’s pharmaceutical sector has always been a topic of significant importance, given the industry’s role in global healthcare. The Indian government has been gradually liberalizing FDI in this sector, but there are still certain restrictions and conditions that companies must navigate. 100% FDI is allowed in the greenfield pharmaceutical entities/ projects through the automatic route. For brownfield pharmaceuticals entities or projects, while 100% FDI is allowed, however only 74% is allowed under the automatic route. For FDI investment beyond 74%, government approval is required. Non-compete condition with the existing shareholders is not allowed barring special circumstances at the discretion of the government. Further, in such cases, the government approval may also incorporate additional conditions.

Despite the sector’s growth, regulatory and compliance challenges can be a hurdle. Stringent registration requirements and extensive documentation are common pain points. To improve the business environment, extending the validity of licenses and reducing documentation requirements could be beneficial.

Another area for improvement is the labelling requirements. While Indian labelling standards are robust, they don’t fully align with international standards like those from ISO, which promote global harmonization and market access. Adopting ISO standards into Indian labelling practices could boost international competitiveness and operational efficiency while ensuring compliance with local regulations.

Moving to the pricing – the Drug Price Control Order plays a crucial role in making essential medicines affordable in India. While it has positive impacts on public health by ensuring access to necessary drugs, it also presents challenges for pharma companies, including pricing pressure and potential impacts on innovation. Balancing affordability with the needs of a dynamic and growing pharma industry remains a critical challenge for policymakers.

Lastly moving to the quality standards – the implementation of revised Good Manufacturing Practices has been essential. It has led to a significant enhancement in the quality of drugs manufactured in India.

In conclusion, while the FDI landscape in the Indian pharmaceutical sector has become more liberalized over the years, companies must still navigate a complex web of regulations to operate effectively. Thanks for tuning in. In the upcoming episodes, we will dive deeper into other pressing issues in the healthcare sector.

JSA advised Kauvery Hospital in multiple property acquisition and setting up of hospitals

JSA assisted and represented Sri Kauvery Medical Care (India) Limited(“Kauvery Hospitals“) in connection with the acquisition of properties for setting up of hospitals in the cities Tirunelveli, Salem and Hosur of Tamil Nadu.

In Tirunelveli, JSA advised and assisted Kauvery Hospitals in the acquisition of an existing hospital property.

In Salem and Hosur, JSA has assisted and represented the client in setting up of new hospitals. The transaction involved proposed construction of hospital building under the ‘Built-to-suit’ model and acquisition of the hospital property under a composite long-term lease.

JSA provided support to the client in due diligence, transaction structuring, drafting of deal documentations and rendering of closing assistance. This strategic expansion marks a significant milestone for Kauvery Hospitals in enhancing healthcare access across the region.

Our Transaction Team Comprised Partner – Aravind Raj and Associate – Priyanka Ponna.