New Rhein Healthcare Investors announced has agreed to sell its 60 per cent stake in Softhale NV to Sino Biopharmaceutical Limited for a USD110 million upfront payment plus a profit share.
The total deal value could exceed USD200 million subject to Softhale’s business development. The sale of Softhale marks the first exit from New Rhein’s latest fund, which was launched in 2018.
Headquartered in Belgium, Softhale has developed a new generation of Soft Mist Inhalation (SMI) devices to improve respiratory treatments. The company delivers proven drugs through its proprietary SMI device designed to deliver medication to the lungs more effectively than other types of inhalers. The WHO estimates that 235 million people suffer from asthma, and four million die prematurely from chronic respiratory disease every year. Softhale’s products offer the potential to substantially improve the treatment paradigm for asthma and Chronic Obstructive Pulmonary Disorder (COPD) globally.
Greg Parekh, Founder and Managing Partner of New Rhein, says: “During the past two years, Softhale has made significant progress in developing its platform and achieved important regulatory milestones. The sale of Softhale represents another strong result for our investors and demonstrates New Rhein’s continued ability to choose the right opportunities and build value in the companies we back. We have been very deliberate in ensuring we find the right partner to continue the successful trajectory of Softhale, with the well-being of patients at heart. I believe Sino Biopharm is a good home for the business and will be committed to Softhale’s mission of developing innovative technologies to treat multiple respiratory conditions to help millions of patients globally.”
New Rheintakessignificant or majority equity positions in life science venture capital companies with the aim to use that influence to create value for patients and its investors. Its investment focus lies on proven assets used in new ways. New Rhein held a 60 per cent stake in Softhale at closing, having made its main investments in 2019 and 2020. The other main investor, PM Equity Partner, sold its 25 per cent stake to Sino Biopharm as well.
Alexander Stoeckel, Head of PM Equity Partner, says: “We are proud supporters of Softhale’s outstanding team and think this is a well-deserved success for their tremendous efforts.”
Dr. Jan-Torsten Tews, CEO of Softhale, says: “New Rhein has played a fundamental role in transforming Softhale from its medical technology driven origins into a highly specialized developer of respiratory medicines and in accelerating the development of our pipeline with operational expertise, resources and a global network. At this crucial point of our development, Sino Biopharm is a great partner on our mission to further advance and broaden the development of our platform and to build and launch a new generation of highly effective inhalable medicines on a global scale.”
Theresa Tse, Executive Director and Chairwoman of Sino Biopharm, says: “Softhale is an excellent fit with our ambition to become a global leader in treating respiratory diseases, which become an ever more pressing medical concern globally and in China in particular. We are committed to support the Softhale team in further developing its innovative platform.”
The transaction was signed today. Closing is expected within March 2021. Guggenheim Securities acted as financial advisor to Softhale.
