This is the third time the pharmaceutical company has been bought by private equity firms

This is the third time that the pharmaceutical company has been bought by private equity firms

  1. $2bn: iNova Pharmaceuticals, an Australia-based manufacturer of prescription and over-the-counter medicines and vitamins, features in our top three list twice. The company is set to be acquired by US-based private equity firm TPG, with the help of existing shareholder Pacific Equity Partners retaining a minority stake. The pharmaceutical group is expecting to record more than $150mn in EBITDA by the end of 2022, making the purchase price an estimated 13x multiple of entry EBITDA. 
     
  2. $1.4bn: Sirtex Medical, a medical devices company in Sydney specializing in cancer treatment, was taken private in May 2018 by Hong Kong’s China Grand Pharmaceutical and Healthcare Holdings, and Beijing’s private equity firm CDH Investment at AUD$33.6 per share, a 78.4% premium to the pre-offer share price in January 2018. The buyers outbid California-based radiation oncology treatments and software producer Varian Medical Systems.
     
  3. $930mn: Pacific Equity Partners and Carlyle Group acquired iNova Pharmaceuticals from Australian private equity firm Archer Capital in June 2017.

iNova Pharmaceuticals is capitalizing on growth in the over-the-counter healthcare market in Australia, which is set to grow at a compound annual growth rate (CAGR) of 2.7% from AUD$6bn (around $4.2bn) in 2021 to AUD$6.8bn in 2026, according to forecasts by data company GlobalData. The ageing and increasingly affluent demographics of Australia and the Asia-Pacific region will create demand for better healthcare, driving continued growth of the pharmaceutical sector. Aside from iNova, TPG also recently acquired a majority stake in Doc Generic, an Italian manufacturer of generic pharmaceuticals.

 

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The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.