Advanz Pharma Acquisition: Key Details, Impact, and What Comes Next

Nordic Capital's acquisition of Advanz Pharma, valued at approximately $846 million, marks a significant move in the specialty pharmaceutical sector. This strategic acquisition is expected to bolster Advanz Pharma's growth, enhance its global reach, and improve access to critical medicines. The deal underscores Nordic Capital's commitment to investing in healthcare and supporting the expansion of its portfolio companies.

What Is Advanz Pharma?

Founded in 2018, Advanz Pharma is a global pharmaceutical company specializing in specialty, hospital, and rare disease medicines. Its product portfolio includes innovative medicines, specialty generics, biosimilars, and originator brands across various therapeutic areas. Advanz Pharma differentiates itself with a commercial presence in over 90 countries, strategic partnerships with biopharma companies, and a Centre of Excellence in Mumbai, India, which supports its global operations and broad therapeutic coverage.

Who Acquired Advanz Pharma?

Nordic Capital is a prominent private equity investor known for developing successful businesses globally. The company focuses on strategic investments in Healthcare, Technology & Payments, Financial Services, and Services & Industrial Tech. Through active ownership, Nordic Capital accelerates growth and identifies transformative opportunities for its portfolio companies. Recognized as a leading European private equity firm, it has a strong track record of building sustainable companies and driving significant industry influence.

When Was Advanz Pharma Acquired?

Nordic Capital acquired Advanz Pharma on June 1, 2021. This acquisition occurred during a period of heightened focus on healthcare investments, driven by the ongoing COVID-19 pandemic. The timing aligns with industry trends emphasizing cost-effective solutions and access to critical medicines. The strategic move by Nordic Capital reflects a broader trend of consolidating resources to enhance the availability and development of essential drugs, particularly in the European market.

Why Was Advanz Pharma Acquired?

• Market Expansion: The acquisition of Advanz Pharma by Nordic Capital significantly broadens the company's market reach. Advanz Pharma's strategic focus on complex medicines in Europe, combined with its established global network of commercial partners, ensures expanded access to essential medicines. Additionally, the acquisition of Intercept Pharmaceutical’s subsidiaries in 2022 further increased Advanz Pharma's presence in key markets within the EU, Canada, and other regions outside the US.
• Technology Integration: Although not explicitly mentioned, the acquisition leverages Advanz Pharma's advanced pharmaceutical technologies and delivery systems. The extension of a strategic partnership with Alvotech in 2023 to commercialize biosimilars highlights the integration of cutting-edge technology to ensure successful market registration, commercialization, and patient access.
• Competitive Advantage: Advanz Pharma's expertise in anti-infectives, endocrinology, and other therapeutic areas, along with its strong relationships with hospital decision-makers, positions it as a leader in the pharmaceutical market. Nordic Capital's deep sector expertise and access to capital further enhance Advanz Pharma's competitive position, enabling significant investment in its organic and inorganic pipeline and ensuring sustained access to critical medicines.

Acquisition Terms

• Acquisition Price: Approximately $846 million.
• Payment Method: Each Advanz Pharma shareholder received $17.26 in cash per share, except for Bybrook, which opted for an alternative offer and exchanged its shares for Topco B Shares.
• Key Conditions or Agreements:
  • The acquisition was completed through a court-sanctioned scheme of arrangement under Article 125 of the Companies (Jersey) Law 1991.
  • Advanz Pharma shareholders, representing approximately 87.94% of the limited voting share capital, irrevocably undertook to vote in favor of the scheme.
  • The acquisition involved the entire limited voting share capital of Advanz Pharma being acquired by Cidron Aida Bidco Limited, a subsidiary of Nordic Fund X Epsilon.
  • The acquisition is expected to support Advanz Pharma's strategic growth, investment in its future pipeline, and M&A activities.

Impact on Advanz Pharma

The acquisition of Advanz Pharma by Nordic Capital has led to significant changes in operations and management. Nordic Capital's investment has enabled Advanz Pharma to drive an aggressive M&A agenda, resulting in transformative acquisitions such as the purchase of Intercept Pharmaceutical’s subsidiaries in 2022. This move has more than doubled Advanz Pharma's commercial and medical team across key markets within the EU. Additionally, the strategic partnership with Alvotech to commercialize biosimilars underscores the integration of advanced pharmaceutical technologies, enhancing Advanz Pharma's capabilities in specialty and hospital medicines.

In terms of product offerings and services, the acquisition has broadened Advanz Pharma's expertise in critical care, anti-infectives, endocrinology, and rare disease medicines. The increased investment has also bolstered the company's pipeline of innovative specialty pharmaceutical products, ensuring sustained access to critical medicines for patients globally. Employee reactions have been positive, with CEO Graeme Duncan acknowledging their hard work in building a strong and diverse company. While direct customer reactions are not detailed, the emphasis on enhanced access to essential medicines and potential cost-savings for healthcare systems suggests a favorable outlook.

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