Sector News

CVC Capital revs up rare disease ambitions with $3.5B Recordati buyout

July 3, 2018
Life sciences

Recordati has finally sealed a sale. Private equity player CVC Capital Partners said Friday it would drop €3.03 billion—€2.3 billion in cash and €750 million in long-term debt—to pick up the Recordati family’s 51.8% controlling stake in the company.

The agreement follows a Financial Times report that squabbling among members of the Recordati family—who have been weighing a sale since the 2016 death of CEO Giovanni Recordati—might have scuttled a potential deal. Political uncertainty in Italy also gave CVC pause at one point, the FT noted.

Now, though, Recordati has a “great outcome” on its hands, CEO Andrea Recordati—who will stay on as skipper after the deal closes—said in a statement.

“It was important to find a party that would allow Recordati to remain independent, with continuity for management and employees, and accelerate its growth strategy as a leading global consolidator in the pharmaceutical industry,” he said in a statement, adding that he was “personally reinvesting … as I believe in and support Recordati.”

CVC, for its part, is hoping it can expand Recordati’s “very attractive rare disease business” alongside the company’s core business, Cathrin Petty, CVC’s head of EMEA healthcare, said in her own statement.

“We hope that through our expertise and global healthcare network we will help accelerate this growth across orphan and specialty care to build a global leader in the industry,” she said. CVC’s portfolio currently includes Italian generics maker DOC Generici, as well as copycat Alvogen.

Before landing on CVC as a deal partner, Recordati held informal talks with Asian bidders, and private equity firms Bain and Cinven also reportedly took a look at the company. Before selling, though, Recordi put on its buyer’s hat, forking over $300 million to AstraZeneca in exchange for European rights to heart drug Seloken and related combo product Logimax.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

November 26, 2023

ViCentra links insulin pump with Dexcom, Diabeloop tech to launch closed-loop diabetes system in Europe

Life sciences

Hybrid closed-loop systems rely on an algorithm to first analyze real-time blood sugar readings from a continuous glucose monitor, then use the results to adjust an insulin pump’s output as needed throughout the day. In this case, the algorithm was developed by Diabeloop, the CGM is a Dexcom G6 sensor, and the insulin pump comes from ViCentra.

November 26, 2023

Boehringer builds out cancer capabilities with $500M deal for bacteria-focused Swiss biotech

Life sciences

Boehringer Ingelheim has acquired bacterial cancer therapy company T3 Pharmaceuticals in a deal that could be worth up to 450 million Swiss francs ($508 million). The addition of Allschwil, Switzerland-based T3 will “significantly expand” the German drugmaker’s immuno-oncology pipeline and aligns with some of the company’s existing R&D programs.

November 26, 2023

EuroAPI completes acquisition of BianoGMP

Life sciences

EuroAPI has completed the acquisition of BianoGMP, a contract development and manufacturing organization (CDMO) specializing in oligonucleotides. The acquisition, announced in August, further differentiates its value proposition to support a broader client base across the whole oligonucleotide development continuum, from research to commercialization, EuroAPI said.

How can we help you?

We're easy to reach