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Commercial Due Diligence


Purchase of Mercury and Amdipharm

In early 2012, Hg Capital began a process to dispose of its holding in Mercury Pharma, a UK-focused specialist generics company. Pharmacloud was approached by Cinven to assist in the commercial due diligence on this asset and to provide specialist input on the UK and international generics markets, working alongside Deloitte. As part of this process, we attended the management and VDD presentations and did extensive investigative work among other market players to establish the risks to Mercury’s key products.

amco amdipharm mercuryWhile the Mercury sale process was ongoing, Cinven entered negotiations with the owners of Amdipharm, a company similar to Mercury in that it was built mainly through the acquisition of tail-end products from big pharma, but very different in its geographic footprint, which was primarily outside the UK. Seeing an opportunity to bring Mercury and Amdipharm together to create a much larger company with a sales profile balanced between the UK and international markets, Cinven undertook a rapid and intensive diligence process on Amdipharm with the aim of completing this at much the same time as the Mercury process. Pharmacloud led the commercial due diligence on Amdipharm, again alongside Deloitte, enabling the bank financing for the deal to be put in place in a timely manner.

Cinven announced the purchase of Mercury in August 2012 and of Amdipharm in October of the same year. The combined company, now renamed AMCo, has continued to expand rapidly through a combination of organic and inorganic growth, supported by Cinven. Since AMCo’s formation, Pharmacloud has assisted in the commercial due diligence on acquired assets including Fucithalmic (ophthalmic gel acquired from Leo in March 2013), Abcur (Danish specialty generics company acquired in Dec 2013) and Focus Pharma (UK specialty generics company acquired in October 2014).


Acquisition of Martindale Pharma

In 2010, AAC participated in a competitive auction run by Cardinal Health, which was disposing of its UK pharmaceuticals subsidiary, Martindale Pharmaceuticals. Having achieved exclusivity, AAC engaged Pharmacloud to work alongside another commercial due diligence provider. In this assignment, Pharmacloud worked specifically on the injectables sub-segment of Martindale’s portfolio in order to provide an assessment of the sustainability of existing sales and the prospects for the pipeline. We also reviewed Martindale’s innovative pre-filled syringes (designed to fit with Cardinal’s pump system) in the context of the NHS’s likely willingness to pay for innovation: this part of the project included physician and nurse interviews. AAC was ultimately successful in purchasing Martindale.

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