ArchiMed buys Stragen Pharma

Harriet Matthews
25 June 2021

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ArchiMed has acquired a majority stake in Switzerland-based Stragen Pharma, a company that produces generic drugs for complex and life-threatening illnesses.

ArchiMed said in a statement that current CEO Jean-Luc Tétard is to step down from his role following the deal, but will continue to hold a role on the board. Amine Achite, the former CEO of EA Pharma, will take on the role of CEO.

The GP aims to support the company in developing its product portfolio and intends to invest in its existing operations.

The deal is the fourth platform investment from Med Platform I, which held a final close in August 2020 on €1bn, surpassing its €800m target. The vehicle will be two-thirds committed following the deal.

While the GP's Med I and Med II funds focus on small-cap deals, Med Platform I is its largest vehicle raised to date and targets mid-cap healthcare companies valued at more than €100m. The fund can deploy equity tickets of €50-500m and aims to make six platform investments, with the aim of pursuing buy-and-build strategies to double the size of the businesses during the investment period.

Unquote sister publication Mergermarket reported in May 2020 that Stragen Pharma was up for sale, advised by Cantor Fitzgerald. The company generated EBITDA in the €7-10m range and €60-70m in revenues. Sources told Mergermarket that GPs with healthcare experience could look at the business, including Ardian, Gilde Healthcare Partners, Advent International and Apax Partners.

Company
Founded in 1990, Stragen Pharma specialises in the production of generic drugs for complex and life-threatening illnesses, often producing drugs required by patients in intensive care. The company also produces a range of consumer health products and original drugs. Stragen produces 40 products in total, which are sold in around 60 countries.

Stragen posts revenues of €70m and is headquartered in Geneva.

People
Stragen Pharma – Jean-Luc Tétard (founder); Amine Achite (CEO).
ArchiMed – Jean-Yves Desmottes (partner); André-Michel Ballester (managing partner).