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Actient Pharmaceuticals: Building a Diversified Portfolio Through Proprietary Acquisitions

May 14, 2015

Actient Pharmaceuticals was a management partnership formed with Ed Fiorentino, a former senior executive at Abbott Laboratories, to acquire specialty pharmaceutical companies and products as part of GTCR’s Leaders Strategy™. In less than three years, Actient completed five proprietary acquisitions and built a unique, diversified portfolio of commercial products and pipeline assets focused on the treatment of urological indications.

Actient was formed in 2009 based on GTCR’s thesis that the pharmaceutical industry was an attractive area for investment given several positive trends, including an aging population, increasing availability of drugs for new indications and increasing prescription drug coverage. In addition, near-term growth challenges among mid- and large-cap pharmaceutical companies resulted in significant industry consolidation, leading to product divestitures as these companies attempted to re-prioritize their portfolios and shed non-core assets.

Based on Mr. Fiorentino’s industry experience at Abbott, we believed Actient was well positioned to evaluate these attractive divestiture opportunities and ultimately build a leading specialty business through acquisitions of marketed products and companies. The Actient strategy focused on acquiring undermanaged products, thereby creating an opportunity to grow and preserve these assets through targeted promotion strategies and life cycle management programs.

In July 2010, Actient closed its first proprietary transaction, a corporate carve-out of six on-market products from UCB Pharma. The transaction provided Actient with a strategic asset in the urology space and an opportunity to establish a commercial platform with stable cash flows that could be leveraged through additional acquisitions.

In January 2011, Actient acquired Timm Medical Technologies, a leader in urology medical devices. The acquisition of Timm enabled Actient to expand its urology presence by offering both pharmaceutical and medical device solutions.

In April 2011, Actient followed up the Timm deal with the acquisition of the product Striant (testosterone buccal system), a small but strategic deal consistent with Actient’s focus in urology.

In December 2011, Actient completed the transformative acquisition of Slate Pharmaceuticals, adding the product Testopel (testosterone pellets for implantation), one of the fastest-growing products in one of the fastest-growing segments of the pharmaceutical industry. The acquisition complemented Actient’s strategic focus, broadening the portfolio of leading products marketed to urologists.

Six months later, in June 2012, Actient acquired Bartor Pharmacal. The Bartor acquisition helped to secure the manufacturing of Testopel and reduce cost of goods sold.

In less than three years, through five proprietary acquisitions and organic growth, we believe Actient became one of the fastest-growing pharmaceutical companies. The management team faced a number of challenges in building the company, ranging from sourcing and completing acquisitions to manufacturing and growing sales of its products. The team proved to be highly effective in building the business, hiring key managers and building a sales force.

Actient was acquired by Auxilium Pharmaceuticals in April 2013.