Funds advised by Apax Partners (the “Apax Funds”) have agreed to sell their controlling stake in Neuraxpharm, a leading European specialty pharmaceutical company focused on the treatment of central nervous system disorders (CNS), to funds advised by Permira. Financial details of the transaction have not been disclosed.
With a heritage dating back 35 years, Neuraxpharm focuses on improving the quality of life and mental wellbeing of patients affected by CNS disorders throughout Europe. Neuraxpharm has operations in 13 countries and covers 80% of the European CNS drug market today. The company has one of the most comprehensive product portfolios in CNS specialty pharmaceuticals in Europe, comprising more than 115 CNS molecules.
Drawing on Apax Partners’ deep knowledge of the healthcare sector, the Apax Funds saw the opportunity to create a European champion in CNS specialty pharmaceuticals and in 2016 they acquired Invent Farma in Spain and Neuraxpharm Arzneimittel in Germany, creating the foundations of the pan-European Neuraxpharm group. Since then, and with the support of the Apax Funds, Neuraxpharm has experienced rapid international expansion both through greenfield operations and several acquisitions, transitioning from a local player to a leading pan-European specialty company that covers 80% of the European market.
Under the Apax Funds’ ownership, Neuraxpharm strengthened its management team under the leadership of Dr Jörg-Thomas Dierks. The company grew rapidly both organically and inorganically, closing over 70 company and product acquisitions and in-licensing agreements. It also invested heavily in a robust product pipeline that broadened its CNS portfolio with unique value-added and high-tech medicines. Today Neuraxpharm has annual revenues in excess of EUR460 million and 850 employees.
The Apax Funds have a strong track record of investing in the Healthcare sector, having completed more than 80 investments over the last 30 years across multiple geographies, including the US, Europe and Asia. Recent transactions include the acquisition of InnovAge, Healthium, Candela, Kepro, Unilabs and Vyaire.
Arthur Brothag, Partner at Apax Partners, says: “It has been great to work with Jörg and the whole Neuraxpharm team over the past few years. We are proud to have helped them create and grow the business. Using our deep healthcare sector experience, we were able to support and build Neuraxpharm, leveraging the market opportunity that existed in the European specialty market. We always aimed to put the patient first and, in doing so, also created value for our investors.”
Steven Dyson, Partner at Apax Partners, adds: “Neuraxpharm is an excellent example of Apax Partners’ transformative ownership approach, focused on healthcare fundamentals and partnering with exceptional management teams. We thank Jörg and the team and wish them every success for the future in this new exciting chapter.”
Dr Jörg-Thomas Dierks, CEO of Neuraxpharm, says: “I would like to thank the Neuraxpharm team for their hard work and dedication, focusing on providing critical medicines for chronic patients suffering from CNS disorders. Apax Partners has been an outstanding partner for Neuraxpharm’s management team over the last four years, as we have embarked on international expansion, invested in new differentiated products and grown the employee base. Apax’s deep industry knowledge and experience has been invaluable to us.”
Apax Partners was advised by Jefferies International Limited (M&A adviser), Linklaters (legal advisers) and PwC (financial and tax advisers). The transaction is expected to close in Q4 2020, subject to regulatory approvals.
