Sabhareesh Muralidaran’s Post

Which U.S. healthcare M&A deals stole the spotlight in 2024 ? 2024 has been a blockbuster year for healthcare mergers and acquisitions 😎 Three deals stand out, each shaking up the industry in its own way. ☄ Novo Holdings and Catalent Pharma Solutions : $16.5 Billion that changes everything In March 2024, Novo Holdings, backed by Novo Nordisk, acquired Catalent. The goal? Boost production capacity, particularly for GLP-1 drugs, which are in high demand for diabetes treatment and weight loss. Catalent, already a key player in pharmaceutical services, becomes even more crucial with this deal. As the demand for these treatments skyrockets, Novo Holdings is positioning itself to lead. This isn’t just about production, it’s about market domination. ☄ CVS Health and Oak Street Health: $10.6 Billion to revolutionize primary care In February, CVS Health, the pharmacy giant, acquired Oak Street Health. The goal ? Expand primary care services while driving down costs. The strategy is clear : more services, lower expenses. It’s an audacious M&A move that shows CVS is no longer just selling medication, it’s reimagining healthcare delivery. ☄ Optum and Amedisys: $1.2 Billion to bring healthcare home In January 2024, Optum, the services arm of UnitedHealth Group, acquired Amedisys, a home health and hospice provider. It’s a quiet acquisition, but one with huge implications. Hospital care is no longer the default, Optum is betting big on home-based healthcare. This deal underscores the industry’s shift towards decentralized care, and Optum wants to be at the forefront. These deals paint a clear picture : the race for innovative therapies and decentralized healthcare services is accelerating.

Headlining this week's CHC Newsflash: In a move that is set to reshape the CHC landscape, Sanofi appears to be on the cusp of a game-changing deal for its consumer health division, Opella. The pharma giant has reportedly chosen Clayton, Dubilier & Rice (CD&R) as its partner, edging out a consortium led by French private equity firm PAI. According to Le Monde, Sanofi has chosen to enter into negotiations with CD&R “in order to sell the business for more than €15bn”, a valuation “higher than that of PAI”. If it goes through, the deal is poised to be the largest European healthcare transaction of the year – and perhaps one of the most consequential for our industry.   Comment from our Associate Director M&A, Chirag Sharma: This deal is part of a trend we’ve seen with Big Pharma offloading consumer units to focus on Rx medicines and cutting-edge therapies. GSK and Pfizer with Haleon, J&J with Kenvue – and now Sanofi joins the conga line. But let’s not lose sight of what this means for the CHC sector. Opella, home to household names like Doliprane and Allegra, is no small fry. This deal, should it come to fruition, will place a significant chunk of the OTC market in the hands of private equity. It is testament to the enduring appeal of CHC – steady cashflows, brand loyalty and growth potential in Emerging Markets are music to PE firms’ ears.    What’s particularly intriguing is the structure of the deal. Sanofi isn’t making a clean break; instead, it will reportedly retain a 50% stake in Opella. By maintaining significant skin in the game, Sanofi can still benefit from Opella’s reliable earnings, while freeing up capital and management bandwidth for its ambitious R&D plans. For CD&R, this is a golden ticket to the big league of CHC. With Sanofi as a partner (at least for now), it is getting not just a portfolio of brands but also the expertise and market position that comes with a pharma pedigree. It’s a platform that could be used for further consolidation in the fragmented OTC space.   But let’s not get ahead of ourselves. As of now, the parties are still in the “exclusive discussions” phase. The deal isn’t done until the ink is dry and there’s many a slip twixt cup and lip. Regulatory hurdles, employee consultations, and the ever-present risk of last-minute hiccups, all loom on the horizon. If talks succeed, any agreement will follow consultations with employee representatives. We’ll get more details once a decision is made. For the rest of us, it signals ongoing consolidation in the industry. We’re left wondering: How will this reshape the competitive landscape? Will we see more PE-backed players? What about pricing and innovation? One thing’s for sure – the CHC world is in for an exciting ride. Stay tuned! To read more of our thoughts on this and other key CHC trends and developments, trial our combined news service by contacting Melissa #consumerhealthcare #CHC #CHCNewsflash #CHCNewDirections #sanofi #Opella #manda #mergers #acquisitions

Cipla and Alkem eye Rs 4,000 crore stake in India's largest stent manufacturer Cipla and Alkem Laboratories Ltd. have emerged as the leading contenders to acquire a controlling stake in Sahajanand Medical Technologies, India’s largest cardiac stent manufacturer. This comes after private equity giants KKR TPG Capital, and Apax Partners withdrew from the race, having initially shown interest. The deal, expected to value SMT between Rs 3,500 and Rs 4,000 crore, is anticipated to see binding offers submitted by next week. The Kotadia family, are planning to retain a minority stake in the company, likely holding onto 15-20 per cent post-transaction. Other shareholders are also expected to divest their holdings in this high-stakes deal. https://mybs.in/2dZiQiO

Sanofi Seals Deal With Private Equity Firm for 50% Stake in Consumer Healthcare Unit -BioSpace Sanofi will sell a 50% controlling stake in consumer healthcare unit Opella to private equity firm CD&R, with the French government taking a stake as well to ensure the business remains in the county. Sanofi has officially struck a deal to sell a 50% controlling stake in consumer healthcare unit Opella to a private equity firm, valuing the new standalone company at €16 billion ($17.3 billion). American private equity firm Clayton Dubilier & Rice (CD&R) will take the majority stake, but the French government is taking a 2% share via public investment bank Bpifrance to assuage concerns over the iconic company taking jobs and production out of the country. Sanofi will remain a significant shareholder as well, according to the Monday announcement. The deal puts Opella on the path to becoming a standalone company, leaving Sanofi to focus on its innovative medicines and vaccines. The company will remain headquartered in France, employing 11,000 people with operations in 100 countries and 13 manufacturing sites. Opella’s brands include seasonal allergy medication Allegra, topical pain relief line IcyHot and constipation drug DulcoLax.  Sanofi will receive a cash payment from the transaction sometime around the second quarter of 2025. Proceeds will go towards existing capital-allocation plans including shareholder returns and external growth opportunities. Sanofi revealed talks with CD&R earlier in October, with the move to sell off the consumer healthcare unit first revealed a year earlier as part of the French pharma’s October 2023 “Play to Win Strategy.”  After announcing the deal, Sanofi faced criticism from French officials, who worried about the loss of a strategic asset, Reuters reported last week. Labor unions called for a strike to protest the deal. Sanofi then received a rival offer from private equity firm, PAI Partners. https://lnkd.in/etcFuNjm

BINDAWOOD ACQUIRES JULPHAR'S SAUDI PHARMACY BUSINESS FOR SR444.1 MILLION In a significant business move, BinDawood Holding has acquired Zahrat Al Rawdah Pharmacies, a subsidiary of UAE-based pharmaceutical giant Julphar, for SAR 444.1 million. Zahrat Al Rawdah operates 173 retail outlets across Saudi Arabia. This acquisition marks BinDawood’s strategic expansion into healthcare, adding pharmacy services to its retail offerings, which already span grocery and building materials. This transaction aligns with Julphar’s broader goal to streamline operations by divesting non-core assets. Proceeds from the sale will fund Julphar's focus on manufacturing and expanding its pharmaceutical product lines in Saudi Arabia. The company plans to leverage these resources to enhance its product pipeline, currently consisting of around 100 products at various stages of development. According to Dr. Basel Ziyadeh, CEO of Julphar, the sale strengthens the company’s financial foundation, positioning it to capitalize on growth in the Saudi market. This divestment supports Julphar’s vision of launching innovative therapeutic products and continuing its transition to a more focused, profitable operation. BinDawood's CEO, Ahmad BinDawood, expressed excitement over the integration, which positions the company as a pioneering retailer providing accessible healthcare products alongside everyday essentials. This acquisition underscores BinDawood's commitment to diversifying its portfolio, enhancing customer access to healthcare within its stores, and solidifying its leadership in Saudi retail. This deal, coupled with Julphar’s focus on strategic growth areas, showcases both companies’ efforts to adapt to shifting industry dynamics and expand their market influence.

Mankind Pharama Ltd. Q1FY25 Concall🌍 Company Overview - Recent acquisition of 100% stake in BSV Limited. - Expanded into OTC and consumer wellness markets with leading brands. - Chronic segment since 2004; introduced specialty business for various diseases. Market Performance - Outperformance in secondary sales compared to IPM. - Now the second largest pharma company by sales volume. - Volume growth of 1.9% vs. IPM’s 0.4%. Product and Portfolio Updates - Launched high-efficacy injectable Inclisiran and Vonoprazan. - Consumer healthcare revenue up 32% QoQ; reduced stockists by 60%. - Export revenue up 62% YoY. Acquisitions and Partnerships - Acquired Panacea Biotec’s transplant and oncology portfolio. - Partnered with MNCs for in-licensing niche products. - New acquisition of Bharat Serum to enter super specialty products. Financial Metrics - Gross margin increased to 71.9%; adjusted EBITDA margin at 25.2%. - EBITDA growth of 4% YoY; adjusted EBITDA at INR728 crores. - Consumer Healthcare business operating profit at 20%. - Sequential revenue growth of 32% in Q1 FY'25. BSA Acquisition Details - ROCE for BSV expected to be upwards of 20%. - Enterprise value of INR13,630 crores; net debt details pending. In-Licensing and Product Impact - In-licensed products contributing less than 1% currently. - Focus on high-end doctors and specialty markets for future growth. Sustainability of Margins - Gross margin of 70% expected to be sustainable long-term. BSV Deal Growth - Pro forma growth is 17% for India and 25% for international business. - Reported growth is slightly better than 17% due to the TTK acquisition. - Adjusted for volatility, reported growth is around 24%, with a future outlook of 15% to 20%. Industry Volume Growth - Volume growth remains muted, with recent rates around 0.9% to 1%. - The shift towards generics and seasonality affects growth. Metro vs. Rural Share - Mankind's metro and Tier 1 share has increased from 51% to 55% in the past 4 years. - Metro and Tier 1 growth rates are better than the overall IPM market. Panacea Acquisition - Panacea's business has grown at a pace of 33% with EBITDA margins close to 30%. - The growth is attributed to its high-entry barrier products and market expansion. - BSV Acquisition Funding - The acquisition will be funded using a mix of internal accruals, debt, and equity. - Around 30% of the funding might come from equity. Market Segments - Rural growth has been slower compared to metro and Tier 1 cities due to seasonal impacts and a focus on acute rather than chronic segments. - Chronic diseases are growing faster in urban areas. Future Projections for BSV - Potential for BSV sales to reach INR 5,000 crores in the next 3-4 years due to high-entry barrier products and market potential. Export Growth - Export growth has been strong but is influenced by a low base from the previous year. - The focus remains primarily on the domestic market.

New York's PE Healthcare Sector Weekly Round-up 🏥 📍 New Mountain Capital is selling ILC Dover to Ingersoll Road for about $2.3 billion. ILC Dover, established in 1947, specializes in designing and producing solutions for various markets including biopharma, pharmaceuticals, medical devices, and aerospace. The acquisition is anticipated to be finalized in the second quarter. 📍 WindRose Health Investors, based in New York, has successfully acquired SubjectWell. SubjectWell is a patient access company connecting patients with healthcare options, serving over 300,000 new patients monthly. WindRose's investment aims to expedite the development of new solutions and support healthcare companies requiring qualified patients for clinical trials. 📍 Charlesbank Capital Partners has created Kleer-Membersy, a US-based dental membership plan provider, through the merger of Kleer and Membersy. This strategic move consolidates market share and seeks to leverage growth opportunities in the dental industry. 📍 Permira has acquired Ergomed, a UK-based biopharmaceutical services company specializing in clinical research and trial management. The acquisition, valued at $886 million, represents the largest healthcare deal in the UK for the year. 📍 Kain Capital has invested in Essen Health Care, an independent multi-speciality healthcare provider with over 450 practitioners in New York. This marks Kain's third investment in primary care and multi-speciality care groups. 📍 Avel eCare, supported by Aquiline Capital Partners, has acquired Horizon Virtual, a Minnesota-based provider of virtual hospitalist services. This acquisition enhances Avel eCare's hospitalist services, a rapidly growing segment for the company. #privateequitynews #privateequity #healthcare #rawselection

*API Holdings* is India's largest digital healthcare platform, operating an integrated, end-to-end business to address healthcare needs through technology and fulfillment capabilities. *Technology Platform:* Custom-built technology platform aimed at providing interconnected benefits to each stakeholder in the healthcare value chain. *Stakeholders:* Works closely with consumers, pharmaceutical companies, wholesalers, pharmacies, hospitals, doctors, clinics, and diagnostic labs. *Presence:* Growing nationwide presence with a connected ecosystem approach and multiple synergistic offerings. *Acquisitions in 2021:* January: Acquired *Medlife*, one of India’s leading digital healthcare companies. September: Acquired *Thyrocare*, India’s largest diagnostic player by test volumes. September: Acquired *Aknamed*, a large tech-enabled supplier of specialty medicines and medical products. October: Acquired a 49% stake in *Marg*, a leading ERP provider for retailers and distributors. With these acquisitions, API Holdings now touches every stakeholder involved in healthcare - consumers, doctors, laboratories, and hospitals.

*API Holdings* is India's largest digital healthcare platform, operating an integrated, end-to-end business to address healthcare needs through technology and fulfillment capabilities. *Technology Platform:* Custom-built technology platform aimed at providing interconnected benefits to each stakeholder in the healthcare value chain. *Stakeholders:* Works closely with consumers, pharmaceutical companies, wholesalers, pharmacies, hospitals, doctors, clinics, and diagnostic labs. *Presence:* Growing nationwide presence with a connected ecosystem approach and multiple synergistic offerings. *Acquisitions in 2021:* January: Acquired *Medlife*, one of India’s leading digital healthcare companies. September: Acquired *Thyrocare*, India’s largest diagnostic player by test volumes. September: Acquired *Aknamed*, a large tech-enabled supplier of specialty medicines and medical products. October: Acquired a 49% stake in *Marg*, a leading ERP provider for retailers and distributors. With these acquisitions, API Holdings now touches every stakeholder involved in healthcare - consumers, doctors, laboratories, and hospitals.

# Only Put Off Until Tomorrow What You Are Willing to Die Having Left Undone ## Seize the Opportunity! Invest in Monte Rosa Therapeutics and Maximize Your HSA Growth Potential! 💰💪 ### Summary: Monte Rosa Therapeutics has struck an impressive licensing deal with Novartis that has sent its stock soaring and caught the attention of retail investors. The company is set to receive up to $2.1 billion in development, regulatory, and sales milestones, in addition to tiered royalties on sales outside of the U.S. 🚀 ### Take Action Now to Avoid the Fear of Missing Out! ⏳🔥 Don't miss out on this incredible opportunity to grow your Health Savings Account \(HSA\) through investing. By seizing the moment and investing in Monte Rosa Therapeutics, you can potentially enjoy significant returns as the company capitalizes on its partnership with Novartis. 🔍💼 ### Why Invest? 1️⃣ \*\*HSA Growth\*\*: Investing in your Health Savings Account allows you to take advantage of tax benefits while growing your funds for future healthcare expenses. 2️⃣ \*\*Innovative Healthcare Solutions\*\*: Monte Rosa Therapeutics operates in the rapidly evolving healthcare industry, providing innovative solutions that could revolutionize patient care and generate substantial returns. 3️⃣ \*\*Partnership Power\*\*: The licensing deal with Novartis positions Monte Rosa Therapeutics for unprecedented growth opportunities, making it an attractive investment choice. ### Act Now to Secure Your Financial Future! 📈✨ Investing in Monte Rosa Therapeutics not only cultivates your HSA, but also supports advancements in healthcare that benefit you, your family, and overall wellness. Don't let this opportunity pass you by—take action today to unlock the full potential of your HSA! 💪💼 #hsa #investing #healthcare #health #family #wellness