Clinigen buys Idis for £225 million
pharmafile | April 24, 2015 | News story | Sales and Marketing | CBPE Capital, Clinigen, IDIS, unlicensed
UK speciality pharma group Clinigen is paying £225 million to acquire the Surrey-based unlicensed supplier of medicines firm Idis.
Unlicensed medicines are those that are either already in clinical trials or approved in another market – and doctors can offer them to patients if they think they are the most appropriate treatment.
The companies say in a joint statement that this merger will create a “market leader in the ethical unlicensed supply of treatments”, to doctors and hospitals.
Idis is owned by private equity group CBPE Capital, and provides access to unlicensed drugs in oncology, haematology, immunology and other areas in more than 100 countries.
Peter George who is the chief executive of Clinigen, says: “This acquisition satisfies a number of our key strategic goals – achieving the market leader position in the $5+ billion unlicensed medicine supply sector and strengthening our leading position in the $2 billion clinical trial supply market.
“[It] will also accelerate our growth and gives us a much better balanced portfolio of businesses, whilst extending our unique business model.”
The purchase and accompanying expenses will be financed by a vendor placing –raising gross proceeds of £135m, and by £104m to be drawn down under new debt facilities it says.
Clinigen adds some £2.5 million of revenue and cost synergies have been identified, and that there’s good reasons for combining its businesses. It believes the unlicensed supply market represents a huge growth opportunity and is under-pentrated – estimating its worth in excess of $5 billion.
George says: “The enlarged entity creates an incredibly exciting business with tremendous opportunities for growth. I am confident that, together with Idis, we have the right people to define and shape the unlicensed medicine supply market – an increasingly important health care sector for patients with unmet needs.”
Brett Wells
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