Nycomed Joins List of Private Companies up for Sale

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Nycomed Joins List of Private Companies up for Sale March 24, 2009 Nycomed joins list of private companies up for sale Amy Brown Reports claiming that Nycomed is seeking a buyer adds the Swiss-based specialty pharma company to the growing list of significantly sized private healthcare companies that are supposedly on the “for sale” list. The news followed claims last week that closely-held US dermatology group, Stiefel Laboratories, was seeking buyers, in a deal that could be worth $3bn. Last year, CLS bid $1.3bn for Talecris Biotherapeutics, another substantial private company take out should it complete. What all three have in common are private equity stake holders. The proximity of three big private company sales could be a coincidence. However, with many investors keen to shore up cash balances, the pressure to exit past investments is probably as intense as it has ever been. In August last year Talecris was sold by its private equity owners, Cerberus Capital and Ampersand Ventures, to CSL following an aborted IPO attempt the previous year. Its private equity owners were clearly very keen for an exit. A similar situation could be emerging with Nycomed, which is owned by four financial institutions. Unlike Talecris and Nycomed, Stiefel is still majority owned by the founding family; Blackstone owns a minority stake following a $500m investment in 2007. Credit crunch There are also privately owned generics groups currently on the block, although for different reasons. Actavis from Iceland and Germany’s Ratiopharm are up for sale through necessity rather than choice; their billionaire businessmen owners, crippled by the credit crunch, need to pay down debt. Actavis has been on the block since last year, and it is thought that the price tag has been lowered in an attempt to attract bidders. The group may even break itself up. Last year, the group was valued at €6bn, more recently valuations closer to €4bn have been mooted. Entrepreneur Bjorgolfur Thor Bjorgolfsson took the group private in 2007, and built the group up through acquisitions, but was ham-strung by debt after the Icelandic financial system collapsed last year. Ratiopharm, the German generics group owned by the Merckle family, is up for sale following the collapse of the business empire and suicide of family patriarch Adolf Merckle. Sanofi-Aventis and Teva are thought to be possible buyers, and the business has been valued at around €3bn. Founding families An analysis of other significant private healthcare companies reveals that few others have private equity owners, with founding families retaining controlling stakes (see table below). This could mean other than Stiefel, Nycomed, Actavis and Ratiopharm, the peak of auctions of private companies is not going to last much longer. However, with big pharma providing ample evidence in the last few months of its appetite for deals, if any founding family was looking to take retirement, there would certainly be buyers out there. What is certain, is that private equity are unlikely to be on the buying side this time round. Private companies and ownership 2007 Rx Shareholders (>5% Company Profile Country sales Holding) ($m) The Boehringer Ingelheim Boehringer Ingelheim, the world's group of companies is Boehringer Ingelheim, the world's group of companies is largest privately owned healthcare controlled by C.H. company. Operation include: Boehringer Sohn. Boehringer 11,756 Prescription Medicines, Consumer C.H. Boehringer Sohn is Germany Ingelheim Health Care, Animal Health and owned by the 4th Industrial Customer (Fine generation of Boehringer, Chemicals & Biopharmaceuticals). Liebrecht and von Baumbach families. Servier is a privately-owned Controlled by Jacques pharmaceutical company based in Servier, M.D (Chairman). Servier 4,799 France and ranks as the second France Total shareholding not largest French pharmaceutical available. company worldwide. Nycomed is a private European specialty pharmaceutical company Nordic Capital held 39.9% based in Zurich, Switzerland. (31 DEC 2007). Markets a range of organic and in- Credit Suisse (DLJMB) held licensed products across Europe 24.2% (31 DEC 2007). Nycomed 3,852 & Russia. Subsequent to its €4.6bn Coller International Switzerland 2006 acquisition of Altana Pharma Partners held 9.0% (31 DEC the group gained R&D 2007). functionality and vastly increased Avista held 6.1% (31 DEC its group sales and geographic 2007). coverage. Menarini is a privately-owned Alberto Aleotti: Majority pharmaceutical company based in shareholder Menarini 3,025 Italy Italy. Menarini Family: Minority shareholding 24 JUL 2007: Novator (an investment firm owned by Bjorgolfur Thor Bjorgolfsson, Actavis's Chairman) Icelandic generics group, now up completed its acquisition of Actavis 1,866 Iceland for sale. Actavis for approximately $4.6 billion (€ 3.4bn or €1.075 per share); Actavis de-listed from OMX Nordic Exchange. Grünenthal, a German privately- held pharmaceutical company Grünenthal 1,160 Unconfirmed Germany focused on treatments for pain and contraception. Talecris Biotherapeutics, a North In the process of being Carolina based private bought by CSL for $1.3bn Talecris 1,148 biotechnology company, created in from its private equity USA Biotherapeutics April 2005 upon the acquisition of owners, Cerberus Capital Bayer's plasma products business. and Ampesand Ventures Owned by Merckle family's VEM German generics group owned by Vermoegensverwaltung; up Ratiopharm 1,137* Germany the Merckle family for sale amid pressure from creditor banks after collapse of Merckle business empire Ferring, a Switzerland-based private pharmaceutical company, Dr Frederik Paulsen Ferring 1,096 focused on urology, obstetrics Foundation 100% (15 MAY Switzerland Pharmaceuticals & gynaecology, gastroenterology, 2006). and endocrinology. Octapharma is a Switzerland based privately-owned Controlled by Wolfgang Octapharma 1,031 pharmaceutical company Marguerre, Chairman. Total Switzerland specialising in plasma shareholding not available. fractionation. Galderma, a privately owned Switzerland based pharmaceutical Ownership: company formed in 1981 as a joint Galderma 1,009 50% Nestlé Switzerland venture between Nestlé and 50% L'Oréal L'Oréal. It is focused on dermatology products. LEO Pharma is a privately-held LEO Pharma is wholly- Denmark based pharmaceutical owned by the non-profit Leo Pharma 965 company focused on Denmark organisation LEO dermatological diseases. Foundation. Chiesi is a privately-held Italian pharmaceutical company focused Chiesi 900 100% Chiesi family owned. Italy on respiratory, cardiovascular and musculoskeletal therapy areas. Merz, a privately-held healthcare company based in Germany. Merz Pharma contributes approx. 80% Merz family own 100% of Merz 791 Germany to total group sales (balance of company. sales from Merz & Krell, a writing instrument manufacturer). Purdue Pharma is a privately- owned pharmaceutical company Private company controlled based in Connecticut. Purdue by Sackler family. (Purdue Pharma is also known as Purdue Purdue Pharma 770 was acquired by Dr USA Frederick and is part of a group of Mortimer D Sackler and Dr associated companies including Raymond R Sackler in 1952) Mundipharma and Napp Pharmaceuticals. Pierre Fabre is a France based privately-held pharmaceutical Pierre Fabre 750 company focused on ethical Unconfirmed France medicine, health products & dermo-cosmetics. Majority owned by Stiefel Stiefel Laboratories, a Florida family, private equity firm Stiefel based privately-held 695 Blackstone bought a USA Laboratories pharmaceutical company, minority stake for $500m in specialising in dermatology. 2007. Axcan Pharma (AXCA), was a 25 FEB 2008: Axcan Pharma Canada based pharmaceutical acquired by TPG Capital for Axcan Pharma 349 Canada company that focuses on $1.3bn or $23.35 per share gastrointestinal disease. in cash. Norgine is a UK based privately held specialty pharmaceutical company involved in developing Privately owned; Peter & marketing of pharmaceutical United Norgine 305 Stein, a grand-nephew of products focused on Kingdom the founder, is chairman. gastroenterology, hepatology, incontinence and pain management. *Fiscal 2008 More from Evaluate Vantage Evaluate HQ 44-(0)20-7377-0800 Evaluate Americas +1-617-573-9450 Evaluate APAC +81-(0)80-1164-4754 © Copyright 2021 Evaluate Ltd..
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