Rapid Technical Due Diligence for a CDMO Investment -Empowering Informed PE Decisions
- Sandeep Kachhwaha
- Apr 14
- 2 min read
1. Challenge
This project was commissioned by a leading Private Equity (PE) firm exploring a significant investment in a Mumbai-based Contract Development and Manufacturing Organization (CDMO).
The assignment was to conduct a technical due diligence audit of the CDMO within an extremely tight timeline. Origo was brought in as the Subject Matter Expert (SME) to:
Visit the site
Assess the R&D, QA/QC, and production capabilities
Review documentation and infrastructure
Evaluate the pipeline, IP, and regulatory readiness
All of this had to be completed within a single day on-site, followed by a comprehensive report within the deadline to aid the PE firm's decision-making.
2. Objectives
• Evaluate R&D capability and pipeline deliverability
• Assess intellectual property (IP) landscape and assign commercial viability
• Review QA/QC readiness for US FDA and global compliance
• Estimate real production capacity across dosage forms based on manpower, equipment, and timelines
• Compile all findings into a weighted risk assessment framework to support investment decisions
3. Our Approach
Rapid On-Site Assessment
• Reviewed product pipeline across development stages
• Applied a weighted average scoring model for technical maturity and market potential
• Evaluated IP status and alignment with global filings
• Audited QC systems, instrumentation, and staff competence
• Assessed QA systems against US FDA expectations
• Visited manufacturing areas and warehouse to estimate throughput and compliance
Risk Modeling & Reporting
• Designed a visual scoring matrix based on capability, capacity, and compliance
• Compiled a detailed, decision-focused report tailored for non-technical investors
• Presented findings with actionable insights and investment implications
4. Final Results
• Delivered a comprehensive technical due diligence report within the tight timeline
• Identified both risks and strategic advantages of the target CDMO
• Enabled the PE firm to make a confident investment decision
• The firm proceeded to invest INR 150 crores in the CDMO based on Origo's assessment
5. Key Takeaways
• Even with time constraints, a structured technical framework enables meaningful due diligence
• Translating complex technical evaluations into actionable investment insights is key for financial stakeholders
• Collaborating with PE firms and banks requires balancing technical depth with business clarity
• Origo built strong capabilities in rapid diagnostics, investor communications, and IP + regulatory alignment
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