CHICAGO, February 9, 2009 – GTCR, one of the nation’s leading private equity firms, announced today that it has signed a definitive agreement to sell Ovation Pharmaceuticals, Inc. (Ovation), a leading U.S. biopharmaceutical company, in an all cash transaction valued at up to $900 million. Ovation will be acquired by H. Lundbeck A/S (Lundbeck), an international pharmaceutical company based in Copenhagen, Denmark.
Consideration for the transaction will include cash payments of $600 million to Ovation’s shareholders at closing and up to an additional $300 million based on certain regulatory milestones for Sabril® (vigabatrin), a drug currently under development by Ovation.
GTCR partnered with Jeffrey S. Aronin, CEO of Ovation, and Wilbur H. Gantz, Chairman of Ovation, in 2002. Since that time, with capital from GTCR, Ovation has made nine major acquisitions, purchasing more than twenty-one marketed and development-stage drugs.
“During the last seven years, Jeff and his management team have built a truly unique and valuable specialty biopharmaceutical business,” commented Dean Mihas, principal of GTCR. “Our successful investment in Ovation reaffirms our commitment to the pharmaceutical industry, and we look forward to partnering with outstanding CEOs and making additional investments in the space.”
“GTCR has been a fantastic equity partner for us, investing in our drug development efforts and providing significant capital for strategic acquisitions over the years,” added Jeff Aronin. “During our partnership with GTCR, Ovation has been focused largely on developing drugs for severely ill patients where there is significant unmet medical need, and our new partnership with Lundbeck is a great milestone in that ongoing effort.”
Ovation also recently announced that the U.S. Food and Drug Administration (FDA) has approved ATryn®, a recombinant antithrombin for the prevention of peri-operative and peri-partum thromboembolic events in hereditary antithrombin deficient patients. ATryn is the first ever transgenically produced therapeutic protein and the first recombinant antithrombin approved in the U.S. Ovation will market ATryn in the U.S*. Ovation also recently met with an FDA appointed advisory committee who voted unanimously to recommend Sabril® as a monotherapy for Infantile Spasms (IS). This vote came after a unanimous recommendation of Sabril as an adjunctive treatment for adults with refractory Complex Partial Seizures (CPS). The FDA is currently reviewing the New Drug Application for Sabril**.
Ovation’s sale is expected to close after receiving customary regulatory approvals. Goldman Sachs is advising Ovation on its sale. Kirkland & Ellis LLP and Katten Muchin Rosenman LLP are providing legal counsel to Ovation. Morgan Stanley is advising GTCR on the transaction. Lundbeck is being advised by Deutsche Bank and Morgan Lewis.
*For important information on this drug, visit: http://www.ovationpharma.com/press_releases_detail.php?article_id=c332b4fa&release_type=press¤t_yr=2009.
**For important information, visit: http://www.ovationpharma.com/press_releases_detail.php?article_id=af069282&release_type=press¤t_yr=2009.
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.
About Ovation Pharmaceuticals
Ovation is a fast-growing biopharmaceutical company that develops and commercializes medically necessary therapies to satisfy unmet medical needs for patients with severe illnesses. Headquartered in Deerfield, Ill., with products available in more than 85 countries, Ovation is committed to having a significant impact on patients’ lives through its focus on central nervous system (CNS), hematology/oncology, and hospital-based therapies. The company expects several new product launches over the next three years, fueled largely by its late-stage CNS pipeline, which is one of the most robust in the industry. Ovation has been recognized for excellence in the global pharmaceutical and biotechnology industries with the 2006 and 2007 “Pharma Company of the Year” award from Scrip magazine for small to mid-sized enterprises. More information about the company, its products and full prescribing information may be found at www.ovationpharma.com.
H. Lundbeck A/S is an international pharmaceutical company engaged in the research and development, production, marketing and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders. In 2007, the company’s revenue was DKK 11 billion (approximately EUR 1.5 billion or USD 2.0 billion). The number of employees is approximately 5,300 globally. For more information, please visit www.lundbeck.com.