| 2 min read
Register for free to listen to this article
Listen with Speechify
0:00
2:00
LONDON—Private equity firm Cinven Ltd. has acquired Surrey, U.K.-based Mercury Pharma for $732 million, with the purchase of the international specialty pharmaceutical company intended "as aplatform for further industry consolidation."
 
"Therealization of Mercury Pharma marks the continued development ofHgCapital's investment focus in the healthcare sector," said HgCapital'shead of healthcare, Philipp Schwalber, in a statement on Friday, after announcing his firm had sold Mercury. "Wecontinue to seek out businesses that enjoy niches of secular growthdespite the challenges facing much of the healthcare space," he said. 
 
Mercury markets niche and branded pharmaceuticals, with its customersincluding retail pharmacies and hospitals in the United Kingdom, as well asglobally in more than 50 countries, many of them inSoutheast Asia and the Middle East.  
 
The company reportedly has a broad portfolioof well-established products including treatments for anaesthesia,antipsychotic, arthritis and anti-inflammatory, cardiovascular,critical and emergency care, joint and musculoskeletal, pain andpulmonary arterial hypertension.
 
Cinven's healthcare team identified niche pharmaceuticals as an attractive segment on the basis that:
  • it is comparatively insulated from patent expiry issues which affect the broader pharmaceutical industry;
  • it is a relatively fragmented market, providing opportunities for a'buy-and-build' strategy, in particular, given Cinven's significantability to identify add-on opportunities through its sector expertise;and
  • it benefits from underlying demographic trends that will result inmore patients requiring treatment with the cost-effective products inMercury's extensive portfolio.
Headquartered in Surrey, Mercury has operational bases in the United Kingdom,Ireland and India.
 
"We identified niche and branded pharmaceuticals as an attractivesegment and, within that, Mercury as a strongly performing business," said Supraj Rajagopalan, a partner at Cinven. "Inaddition to its excellent existing product portfolio and pipeline—bothof which should drive strong organic growth—it is a fantasticplatform for further consolidation both in the UK and internationally.Our in-depth knowledge of this sector, given our long-term focus onhealthcare, has enabled us to identify a number of compellingacquisition opportunities which we hope to execute in the early stagesof our investment. Despite the challenging macroeconomic environment, there willcontinue to be demand for the essential medicines provided by Mercury.In a number of areas, Mercury is actually able to work with payors toreduce costs to the healthcare system."
 
"Our investment in Mercury demonstrates our focus on acquiringEuropean-based companies with significant international growthprospects, as well as our ability to originate investments through ourstrong sector focus," Rajagopalan added.

"In the past two years, the Mercury business has been streamlined torefocus on its core specialty pharmaceutical products. We have awell-diversified product range with high barriers to entry and areinvesting in creating a pipeline of similarly specialist medicines," said John Beighton, CEO of Mercury Pharma.  "Our15 new products launched in 2011/12 are already starting to showearnings momentum and we have a strong product pipeline. Despite thecurrent economic environment, our products and company are extremelywell positioned. "We are delighted to be partnering with Cinven who, with theirexperience in both healthcare and 'buy and build' strategies, willprovide invaluable expertise and investment as we enter this next phaseof growth."

 

About the Author

Related Topics

Loading Next Article...
Loading Next Article...
Subscribe to Newsletter

Subscribe to our eNewsletters

Stay connected with all of the latest from Drug Discovery News.

Subscribe

Sponsored

Clear sample tubes are shown in a clear tote with red lids in a sample prep robot with a blue and silver industrial lab background.

The crucial role of sample preparation in biotherapy manufacturing

Discover how better sample preparation can unlock improved assay accuracy and analytical results.
A black mosquito is shown on pink human skin against a blurred green backdrop.

Discovering deeper insights into malaria research

Malaria continues to drive urgent research worldwide, with new therapies and tools emerging to combat the parasite’s complex lifecycle and global burden.
Three burgundy round and linear conformations of oligonucleotides are shown against a black background.

Accelerating RNA therapeutic testing with liver microphysiological platforms

Researchers can now study oligonucleotide delivery and efficacy in a system that models a real human liver.
Drug Discovery News March 2025 Issue
Latest IssueVolume 21 • Issue 1 • March 2025

March 2025

March 2025 Issue

Explore this issue