Goldman Sachs is in advanced discussions to invest about ₹1,600 crore ($200 million) in La Renon Healthcare for a significant stake in a deal that will value the Sequoia Capital-backed pharmaceutical company at ₹7,500 crore ($900 million). Goldman is likely to acquire Sequoia’s entire 14% stake in La Renon and an additional 5-6% stake from the promoter, multiple people aware of the development told ET.

At present, promoter Pankaj Singh & family own about 80% stake in the Ahmedabad-based formulations manufacturer while domestic venture capital fund A91 Partners owns 6% stake.

Homegrown private equity fund ChrysCapital has also explored the La Renon deal, people cited above said. When contacted, Pankaj Singh, MD of La Renon, confirmed Sequoia’s exit plans without disclosing further details.

Spokespersons of Goldman Sachs and Sequoia declined to comment. Established in 2007 by Singh, La Renon derives most of its revenue from nephrology, central nervous system (CNS), critical care (CC) and gastroenterology (GE) segments.

In 2015, the company had raised ₹100 crore ($16 million) from Sequoia Capital in its first round of funding. In 2021, A91 Partners, floated by Sequoia Capital’s former managing directors Abhay Pandey, VT Bharadwaj and Gautam Mago, pumped in ₹220 crore ($30 million) in La Renon at $500-million valuation.

The company has posted a revenue of ₹1,100 crore for 2022-23, up 32% on year, and an Ebitda of ₹220 crore, people in the know said. In fiscal 2022, its revenue had grown 50% to ₹835 crore from ₹559 crore in fiscal 2021.It has four subsidiaries – Stanford Laboratories, which has a manufacturing facility at Mehatpur in Himachal Pradesh, Frimline, which is into medical foods business, Enaltec Labs, which is into API research and development, and Rusoma Healthcare, which is establishing a manufacturing unit for small volume parentals (SVP).

Acquisition of majority stake in Enaltec Labs and Rusoma Healthcare would result in increased synergies, supporting revenue growth, ratings agency Crisil had said in a recent report.

La Renon has established a strong presence in the domestic formulation market, ranking among the top 40 pharmaceutical companies in India with one of its brands, Nuhenz featuring in the top 300 formulation brands in the domestic market. It has a marketing team of more than 1,300 professionals, covering more than 16,000 doctors across India.

La Renon has around 340 formulations in its product portfolio. Most of the therapeutic segments catered by the company are chronic and only 8% to 10% of the formulations are covered under National List of Essential Medicines (NLEM), resulting in lesser competition, more stability of revenue, and better operating margins compared with many pharmaceutical companies operating in acute therapeutic segments, according to a Care Ratings report.