UCB's Generic Subsidiary Kremers Bought By Investors
By Cyndi Root
UCB has sold its generic subsidiary, Kremers Urban Pharmaceuticals (KU), to international investors. Advent International and Avista Capital Partners purchased U.S.-based Kremers for $1.525 billion. UCB announced the move in a press release, stating that private equity firms have a strong healthcare focus and they will help Kremers Urban continue to grow. UCB intends to use the proceeds of the sale to concentrate on its core businesses in neurology and immunology and reduce its debt. Jean-Christophe Tellier, CEO of UCB, said, "Our growing core business and UCB's progressing early and late-stage pipeline now allow us to focus even more on providing innovative solutions to patients living with severe diseases."
UCB’s Kremers Divestiture
The definitive agreement between UCB and the investors calls for the acquisition of KU by Advent and Avista. UCB’s Board of Directors has approved the divestiture, and the deal is expected to close by the first quarter 2015. The financial arrangements include a cash payout due at closing. UCB will treat KU as a “discontinued operation” and use the funds to reduce indebtedness and develop its therapeutic pipeline.
Advent and Avista
Investors Advent and Avista issued a press release on their newest acquisition, stating that Advent has invested in over 30 healthcare companies over the past 25 years and the newest investment is the fourth pharmaceutical purchase in the past three years. Avista has invested in 24 healthcare companies, including Acino Pharma and Fougera Pharmaceuticals. The investment companies named individuals to senior executive positions, indicating that some KU personnel were pursuing other interests.
Kremers Activities
Kremers Urban Pharmaceuticals is a specialty generic pharmaceutical company based in Princeton, NJ. The company focuses on high barrier-to-entry generic products. Its portfolio includes 20 products marketed for varying diseases and conditions, including gastro esophageal reflux disease, attention deficit hyperactivity disorder, angina/hypertension, and respiratory disease. KU provides extended release formulas, patches, liquids, and injectables. In its Brand to Generic reference guide, Kremers lists its generics that are bioequivalent to many popular drugs, including Concerta, Lipitor, and Prilosec. The company states that it is aggressively pursuing licensing arrangements and development partnerships for products or drug delivery technologies.