CVC collects first round bids for Theramex

Rachel Lewis and Maryna Irkliyenko
09 March 2022

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The sale of UK-based womenтs health pharma company Theramex is underway with first-round bids due early this week, four sources familiar with the matter said.

Rothschild and HSBC are advising on the sale, two of the sources said. Rothschild ran the lender education about one month ago with banks and private credit funds, one of these sources said. IMs were distributed around mid-February, the other source added.

The asset is being marketed off around GBP 100m EBITDA, two of the sources said, with another saying the EBITDA is closer to EUR 85m.

On the bidder front, at least two sponsors have been put off by an unclear product strategy and the fact that there's a major product coming off-patent soon, one of the sources said.

In the year ended October 2021, Theramex generated revenues of EUR 259m and EBITDA before exceptional items of EUR 87m, according to a recent Moody's report. The rating agency expects the EBITDA to reach EUR 90m-EUR 95m in 2022.

Theramex's biggest growth in 2021 came from Systen (menopause), Actonel (osteoporosis), and Ovaleap (fertility), according to the report. Around 80-90% of Theramex's sales come from its mature portfolio with 10-20% coming from patent-protected income streams, according to a Fitch report.

Theramex sells pharmaceutical products related to contraception, menopause, osteoporosis, and fertility, according to its website. The majority of its portfolio is made up of branded and generic prescription drugs acquired from a carve-out of Teva Pharmaceuticals in 2018. CVC formed Theramex from the carve-out, via its Fund IV.

Rothschild and CVC did not respond to a request for comment. HSBC declined to comment.