Apax bets on generics with two European deals

The firm has acquired neuraxapharm in Germany and Invent Farma in Spain as it looks to consolidate the European generics market.

Apax Partners has acquired two European pharmaceuticals companies, neuraxapharm in Germany and Invent Farma in Spain, as it looks to take advantage of the fragmented European generics market.

Both transactions, for which financial details are undisclosed, are expected to close in the next few months.

Apax declined to comment on whether it would seek to merge the two businesses. 

Apax is acquiring neuraxpharm Arzneimittel from ATAX and Neuraxpharm holding, investment companies of the Strüngmann family in Germany. Neuraxpharm has a portfolio of 100 generic pharmaceutical products for treating disorders of the central nervous system (CNS).

In the statement, Apax co-head of healthcare Steven Dyson said the firm has identified the European generics space as an attractive investment area.

“After following neuraxpharm for a long time, we have been impressed by the company’s brand, quality reputation and track record of innovation in the CNS field,” Dyson said. “Our plan is to invest into the organic growth of neuraxpharm and to consolidate the European generics market, as evidenced by our recent announcement of a transaction with Spain’s Invent Farma.”

The firm is acquiring Invent Farma from a consortium of investors led by Silfurberg, an investment company of Fridrik Steinn Kristjansson and family, a group of 16 Icelandic pension funds investing through the Enterprise Investment Fund, and Horn II, a private equity fund managed by Landsbref.

Invent Farma develops, manufactures and markets generic drugs, and comprises three divisions: Inke, which manufactures active pharmaceutical ingredients (APIs) and has expertise in the respiratory area; Lesvi, a manufacturer of finished dosage forms; and Qualigen, which markets generic drugs in Spain and has a franchise in the CNS field. 

Dyson said Apax would look to build on Invent Farma’s success, “particularly on their strength in respiratory APIs and their outstanding CNS franchise”.

Apax is currently in market with its ninth buyout fund. The firm has already raised $7.9 billion for Apax IX, which had an initial target of $7.5 billion, and has set a hard-cap of $9 billion. The firm held an initial close on Apax IX on 20 May, with commitments reaching $7 billion, as reported by Private Equity International. The fund has since reportedly held an official first close.