Flush with cash from its existing holdings and not seeing enough worthwhile venture deals to spend it on, Novo A/S has decided to expand its growth equity investments in mature companies. After a proof-of-principle deal done last year showed the approach could provide strong growth, the Danish holding company struck a second deal last month with the acquisition of generics company Xellia Pharmaceuticals A/S.

Xellia develops and manufactures APIs and finished dosage forms of antibacterials and antifungals. Novo agreed to acquire the company from private equity firm 3i Group for about $700 million.