Intrapharm Laboratories Ltd. has been acquired by German pharmaceutical company RIEMSER Pharma GmbH following a period of sustained growth.
Purchased by the existing management team in 2009, Intrapharm is a fast growing specialty pharmaceutical group marketing niche pharmaceutical products with a primary focus on prescription-based and selected ‘over the counter’ (OTC) products. Intrapharm has since established itself as an important supplier to both the NHS and pharmacy wholesale markets ensuring the ongoing supply of pharmaceutical products with proven therapeutic value and medical need. Current products address therapeutic areas covering Oncology, Ophthalmology, Pain, Gastrointestinal and Dermatology.
Intrapharm’s CEO Kevin James and COO Shafiq Choudhary, who will both remain with the enlarged Group, will work with RIEMSER to bring its product portfolio to the UK, driving sales through Intrapharm’s platform. RIEMSER benefited from the strong support of its majority shareholder ARDIAN on the transaction.
BGF (Business Growth Fund), the UK’s most active provider of growth capital, invested £2m in Intrapharm in 2014. The funding supported Intrapharm as a buy & build platform, with the acquisition of Peckforton Pharmaceuticals, and the addition of the Alvedon drug to Intrapharm’s portfolio, as well as expanding into the Nordic and Irish markets. Prior to BGF’s investment, Intrapharm had revenues of £4m p.a., and expects to achieve sales of £12m for this financial year. Immediately prior to this transaction, Intrapharm also acquired Aquamax, an emollient cream for use against dry skin conditions.
BGF will fully exit its minority equity stake in the business, with all shareholders realising a strong return.
Intrapharm’s CEO Kevin James said: “Over the past ten years we have achieved sustained and significant growth through focusing on the speciality pharmaceuticals market. We are very excited about the opportunity to jointly expand and accelerate our growth strategy under the umbrella of RIEMSER”
“BGF’s funding came at the right time for the business and has allowed us to scale the platform with the acquisition of Peckforton, while our Chairman Brian McEwan has provided invaluable support and advice.”
“I am very pleased for RIEMSER to join forces with Intrapharm, a very successful specialty pharmaceutical company to further strengthen our European growth strategy”, said Konstantin von Alvensleben, CEO of RIEMSER: “This acquisition successfully expands our geographic footprint and opens possibilities of developing our expertise in new niche markets. In addition, Intrapharm contributes a very attractive product pipeline to the joint cohesive product portfolio.”
James Austin, Investor at BGF and a non-executive board director at Intrapharm said: “It has been exciting to watch the growth of Intrapharm under Kevin and Shafiq’s leadership. The success and attractiveness of the Intrapharm business has been ratified by the acquisition from RIEMSER.”
“BGF exists to help entrepreneurs realise their ambitions to grow their businesses and take advantage of market opportunities. The returns we have made from this investment will now be reinvested into other entrepreneurs working to scale-up their companies.”