Private Equity Investment in the Generics and CMO Industry

Rubrik: Fachthemen

(Treffer aus pharmind, Nr. 05, Seite 634 (2015))

Ettner N | Eichner W

Private Equity Investment in the Generics and CMO Industry / Ettner and Eichner • Private Equity Investment · Ettner N, Eichner W · ¹Kandern-Wollbach und ²Butzbach
The ongoing saturation of generic drug products in Western countries combined with persistent pressure from the health care systems for cost savings as well as production overcapacity has caused a margin erosion for generic manufacturers and particularly contract manufacturing organizations (CMO). This has led to a flurry of strategic mergers and acquisitions (M&A). These arguably began with the majority acquisition of Léčiva (later Zentiva), the leading Czech pharmaceutical company of Czech-branded generics, by Warburg Pincus in the late 90s [ 1 ]. Their successful initial public offering (IPO) inspired a growing number of PE transactions in the life sciences industry as ...