Felix Pharma Eyes $250 Mn Stake Sale of Pet Drug Unit

Ireland-based Felix Pharmaceuticals is looking to sell a controlling stake in its Indian subsidiary, Felix Generics, which makes veterinary drugs for 'companion pets' such as dogs and cats, three people with knowledge of the development said.

- Sneha Shah

Felix Pharmaceuticals, which is eyeing a valuation of around $200-250 million for a 51% stake in its Gurugram-based subsidiary, is in talks with mid-sized and buyout private equity (PE) firms for the deal, the people cited above said on condition of anonymity.

The first person cited above said the company has appointed investment bank Lincoln International to help it look for investors. According to the person, Felix is likely to sell at least 51% to a PE firm. The second person added that even after the deal, the founders will retain a sizeable stake and will continue to run the business alongside the PE investor.

"The deal will help the company raise primary capital alongside secondary exit to the founders," the first person said.