Unlicensed to thrill as Clinigen makes £225m acquisition

BURTON-upon-Trent pharmaceutical plc Clinigen is acquiring fellow pharma Idis Group for £225m.

Surrey-based Idis specialises in the ethical unlicensed supply of medicines.

The global ethical unlicensed supply market represents a significant growth opportunity, Clinigen says, as it is estimated to be worth in excess of $5bn and is under-penetrated.
 
It suggests that when the deal is completed Clinigen will be well placed to shape and define this fast growing and critically important market.
 
Idis has a 25 year history and supplies unlicensed medicines predominantly on an exclusive basis through managed access programmes and on-demand through its general access division.
 
In the 12 months ended 28 February 2015, Idis achieved unaudited last 12 month revenues of £196.8m and adjusted EBITDA of £15.6m.
 
The acquisition is expected to be immediately earnings enhancing and significantly enhancing in the first full year of ownership.
 
Clinigen says it has has identified annual cost synergies from the acquisition of approximately £2.5m.
 
The acquisition and associated expenses will be financed by a vendor placing raising gross proceeds of £135m and by £104m to be drawn down under new debt facilities.
 
Peter George, chief executive officer of Clinigen, said: “This acquisition satisfies a number of our key strategic goals – achieving the market leader position in the $5+ bn unlicensed medicine supply sector and strengthening our leading position in the $2bn clinical trial supply market.
 
“The acquisition will also accelerate our growth and gives us a much better balanced portfolio of businesses, whilst extending our unique business model.
 
“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.”

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