Outsourced R&D companies, such as CROs and CDMOs, have been in huge demand this year due to industry tailwinds. Biotech and pharma firms are racing to find treatment for diseases of high unmet need, and external research firms have the capabilities to help life science companies reach the finish line. The M&A market for CROs, especially, has been grabbing all the attention, but CMDOs are in high demand as well, as showcased by the acquisition of Pharmathen by private equity firm Partners Group from BC Partners for $1.9 billion. BC Partners invested in Pharmathen in mid-2015 in a transaction valued at approximately $560 million.
Founded in 1969, Pharmathen is a leading CDMO specializing in advanced drug delivery technologies for complex generic pharmaceutical products. The company focuses on the development of “sustained release” technologies that improve patient compliance, such as long-acting injectables, slow-releasing oral medicines and ophthalmics. Pharmathen’s differentiated B2B model attracts a blue-chip customer base of more than 215 generic pharmaceutical companies, which it serves from two U.S./E.U.-approved manufacturing facilities in Greece. The company’s highly diversified product portfolio of roughly 80 commercialized products is accessed by patients in more than 85 countries worldwide. The organization is expected to generate $110 million in EBITDA in 2021.
Partners Group will work closely with Pharmathen’s management team, led by Chief Executive Officer Dimitris Kadis, on initiatives to scale the business in Europe and globally. In particular, Partners Group will support the company to accelerate its expansion in the US, by building out its on-the-ground presence.
BC Partners was advised by Jefferies, and legal advice was provided by Kirkland & Ellis.
