By Kane Wu
HONG KONG (Reuters) - Singapore-headquartered iNova Pharmaceuticals will buy a portfolio of consumer healthcare brands from Sackler-owned Mundipharma International for an enterprise value of $540 million, an iNova spokesperson said on Monday.
The deal will significantly expand iNova's portfolio of consumer health products and add substantial new sales in high-growth markets, said the spokesperson.
The transaction will give iNova, which markets and sells a wide range of over-the-counter drugs and consumer healthcare products, greater exposure in Asia, especially in Japan and Indonesia, the person added.
Following the deal, iNova’s consumer health product portfolio will account for over 80% of its total product sales, with Asia as the largest region in terms of sales, representing around 35% of the company's revenue, the company said.
The portfolio iNova is acquiring also has sales in Europe, the Middle East, South Africa and Canada, it said.
“This acquisition transforms the scale of iNova and accelerates our market expansion to high-growth markets in Asia and the Middle East,” said Dan Spira, CEO of iNova, in a statement.
Betadine, a brand specialising in antiseptic first-aid products, accounts for approximately 90% of sales of the acquired product portfolio, iNova said.
INova, which dates back to 1846 according to its website, primarily sells cough and cold, throat, skin care and natural health drugs and products.
It said it has completed 15 acquisitions in four years, all funded by cash.
Private equity fund TPG Capital Asia invested an undisclosed sum in the company in October to become its majority shareholder. iNova also counts Australia-based private equity firm Pacific Equity Partners as a minority shareholder.
Mundipharma is based in Cambridge, Britain and is owned by the members of the Sackler family.
The Sacklers have agreed to pay $6 billion in settlement for another of their drug companies, Purdue Pharma LP, to resolve sprawling opioid litigation in the United States.
Purdue, which makes OxyContin, filed for bankruptcy in September 2019 in the face of nearly 3,000 lawsuits accusing the company of fuelling the national opioid crisis through deceptive marketing.
All net proceeds from the iNova acquisition will be held in escrow and deployed towards abating the opioid crisis in connection with the resolution of legal claims, iNova said.
Deutsche Bank (ETR:DBKGn) advised Mundipharma on the sale, iNova said.
In May, Purdue Pharma received a U.S. judge's permission to sell its consumer health business for $397 million, which allowed it to begin liquidating its assets while awaiting a final ruling on a $10 billion settlement that would devote the company's remaining resources to combating the U.S. opioid epidemic.
Mundipharma in 2021 was seeking bids for its China unit in a deal that could fetch more than $1 billion, Reuters reported at the time.
The Chinese unit has not been sold as of now.