Gyrus Capital explores Essential Pharma sale via Rothschild

Min Ho and Rachel Lewis
13 March 2023

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Swiss PE fund Gyrus Capital has engaged Rothschild as it explores the sale of its specialty pharma portfolio company Essential Pharma, three sources familiar with the situation said.

The situation is at an early stage, one of them added.

The business, which supplies low volume but complex to manufacture branded and generic medicines, is expected to be marketed off around GBP 70m EBITDA, one of the sources said.

Under the sponsor, Essential Pharma has made several acquisitions, including last December's acquisition of Haldol, a first-generation ‘typical' antipsychotic for the treatment of schizophrenia.

In late 2021, it made acquisitions for Novartis' ocular and postpartum therapies products.

Also in 2021, Essential Pharma acquired Yorkdale Pharma from Rosemont Pharmaceutical, adding five products to its portfolio while divesting Essential Pharma Liquids to Rosemont.

Rosemont sponsor Inflexion recently tapped Evercore to oversee an exit, as reported.

Essential Pharma is seen to be attractive and described as a "mini Pharmanovia", a Triton-backed peer with a portfolio including cardiovascular, endocrinology and neurology drugs, one of the sources said. Pharmanovia is also tipped as an exit candidate this year, as reported.

Essential Pharma is a supplier of low-volume, difficult-to-manufacture but well-established pharmaceutical products to patients in areas including CNS, gastroenterology and ophthalmology.

In 2020, the management of Essential Pharma, supported by Gyrus Capital, acquired 100% of the shares of the Essential Pharma Group from the founder family owners.

Rothschild, Essential Pharma and Gyrus Capital did not respond to requests for comments.