Partners Group to acquire majority stake in European CDMO Pharmathen

Swiss private equity firm Partners Group has agreed on behalf of its clients to acquire a majority stake in Pharmathen, a Netherlands-based pharma company, from BC Partners, at an enterprise value of nearly €1.6 billion.

Funds advised by BC Partners had acquired Pharmathen in 2015 for €475m.

Established in 1969, Pharmathen operates as a contract development and manufacturing organization (CDMO). It is said to be specialized in advanced drug delivery technologies for complex generic pharma products.

Pharmathen is said to be known for developing “sustained release” technologies such as long-acting injectables, ophthalmics, and slow-releasing oral medicines that enhance patient compliance.

The company’s B2B model is said to cater to a blue-chip customer base of over 215 generic pharma companies. Pharmathen serves its clients from a couple of US/EU-approved manufacturing facilities located in Greece.

Dimitris Kadis – CEO of Pharmathen said: “We are excited to partner with Partners Group in this next chapter of our growth story. The investment, support and guidance of BC Partners has enabled them to be extremely instrumental in taking the Company to the next level as a global leader in drug development and delivery.

“With the support of Partners Group’s global platform, we are looking forward to building a drug development powerhouse that is a trusted partner to blue-chip clients worldwide and makes a positive impact on the lives of people, by ensuring they enjoy better health.”

Dimitris Kadis – CEO of Pharmathen. Photo courtesy of Pharmathen SA.

Partners Group said that it will closely work with Pharmathen’s management team on initiatives to scale the latter’s business in Europe and in other parts of the world.

Particularly, Partners Group will support the CDMO to expedite its expansion in the US by developing its on-the-ground presence.

Pascal Noth – Managing Director, Private Equity Europe, Partners Group said: “Pharmathen is very well-regarded by the broader pharmaceutical industry as an innovative and forward-thinking company. It is a mission-critical partner to its B2B clients whose advanced pharmaceutical technologies create real societal impact and optimize treatment outcomes for patients.

“Partners Group will lend its operational expertise to support Pharmathen as it expands to meet increasing demand for affordable Generics and positions for long-term, sustainable growth.”

The deal, which is subject to customary regulatory approvals, is likely to close in 2021.