GTCR lands $900m pharmaceutical exit

The Chicago-based private equity firm originally invested $150m in Ovation Pharmaceuticals seven years ago.

GTCR Golder Rauner is to sell Ovation Pharmaceuticals to a Danish drugs company in a cash transaction of up to $900 million.

The Chicago-headquartered firm invested $150 million into Ovation in 2002. It went on to back nine add-on acquisitions and purchase more than 20 marketed and development stage drugs to augment the pharmaceutical group.

Danish pharmaceutical company Lundbeck will buy the company in a deal that includes a cash payment of $600 million to Ovation’s shareholders at closing. Lundbeck will pay GTCR an additional $300 million, dependant upon Ovation reaching certain regulatory milestones in the development of Sabril, a drug which treats seizures and infantile spasms.
The deal is expected to complete after receiving customary regulatory approval. Goldman Sachs and Morgan Stanley are advising on the transaction.

GTCR, which was founded in 1980, is very active in the healthcare sector. It currently owns two other pharmaceutical companies: New Jersey-based GeneraMedix Pharmaceuticals and Tennessee-based Graceway Pharmaceuticals.

Last year it also agreed to invest up to $250 million in into a partnership with healthcare executive Thomas Daulton to create a medical device platform called Devicor Medical Products. The firm makes investments across a wide range of industries and has more than $8 billion under management.