6 November 2023, London - Stanley Capital Partners (“Stanley Capital” / “SCP”), the specialist healthcare and resource efficiency private equity investor is pleased to announce that its portfolio company, Laboratoire X.O (“LXO”), has completed the acquisition of the prescription drug Nimodipine under the brand name Nimotop® from Bayer for several markets globally excluding mainland China.
Nimodipine is the only approved 2nd generation dihydropyridine calcium channel blocker that is available in three different formulations (oral tablets, oral solutions and intravenous infusion solutions) in several markets globally. It is used for the prevention and treatment of cerebral vasospasm, following an aneurysmal subarachnoid hemorrhage (“aSAH”), a type of stroke with high mortality and morbidity rates.
The global cerebral vasospasm market is expected to grow at a CAGR of +6.5% (*2022A – 2027E), mainly driven by aging populations (at higher risk of experiencing aSAH and vasospasm), higher incidence of aSAH (with an increasing number of reported aSAH cases worldwide, the potential patient pool for vasospasm treatment is subsequently expanding) and general lifestyle behaviours.
This acquisition builds on Stanley Capital’s investment strategy of consolidating and integrating established medicines with high barriers to entry from big pharma companies. The overall aim is to create a high therapeutic value platform within a space where the firm has actively been investing since 2020.
Nimotop® further strengthens LXO’s market presence in Europe and significantly expands its global footprint. The product also adds to the company’s core therapeutic areas for the Central Nervous System and Cardiovascular. This move creates synergies and diversifies LXO’s global portfolio which will enable an uplift of its valuation multiple as a result.
This acquisition demonstrates LXO’s commitment to maintaining and developing access to essential products for patients’ health on a truly global basis. LXO’s management has identified Nimotop® as a strong candidate to deploy its proven late lifecycle management skills and to help drive its organic growth trajectory. Today, it offers 28 brands powered by a distribution network in more than 80 countries. The LXO team have consistently demonstrated strong capabilities to integrate and revitalise mature brands from big pharma and to enable organic growth through its life cycle management strategy, regardless of historically declining products.
LXO collaborates with a vast network of contract manufacturing organisations (“CMOs”) across Europe and the US and has demonstrated both its ability to deliver product transfers and manage its CMO footprint well to date.
Patrick Hargutt, Founding Partner at Stanley Capital Partners, commented:
Stanley Capital is actively working with LXO management team to further strengthen and support the company through its next phase of growth and wider development. The acquisition of Nimotop® follows a highly impressive M&A track record with now 20 add-on acquisitions completed to date and a clear strategy to pursue further bolt-ons from our actively curated pipeline in established medicines. Management have identified a clear path to implement its systemised late lifecycle management playbook for Nimotop® which includes enlarging its serviceable available market (“SAM”) through digital marketing, pursuing geographic expansion and also optimising market access.
Simon Cottle, Founding Partner at Stanley Capital Partners, added:
With Nimotop® representing the third acquisition within 12 months of SCP’s ownership, we have completed a further milestone in diversifying LXO’s product portfolio. By acquiring the global rights, this will also further accelerate the internationalisation of the business. The increased scale secured, builds on our work to create systematic and digitised life cycle management systems powered by our innovative SCP Digital team.
Karine Pinon, Co-Founder and CEO at LXO, concluded:
This acquisition is a major milestone in LXO’s history. We believe that it will provide a strong basis for further accelerated growth through both organic and external opportunities. We are very proud to take over the management of life-saving drugs such as Nimotop® and are committed to maintaining and developing access to this treatment in more than 45 countries today. This acquisition strengthens our international footprint and offers exciting new opportunities for our future growth. We are thrilled with this development and determined to make the most of this opportunity for the patients, our employees and our shareholders.
About Stanley Capital Partners LLP
Stanley Capital Partners is a European mid-market private equity firm using a research and technology-based approach to identify opportunities in the growing sustainable investment sectors of Healthcare and Resource Efficiency. Stanley Capital targets businesses with the potential of generating EBITDA of $25m to $150m. We partner with management teams, in majority and minority transactions, to transform and grow companies through technological change, operational change and market consolidation.
Stanley Capital was founded in 2019 by Simon Cottle, James Brooks and Patrick Hargutt and has a team of over 100 professionals working closely together with its Leader Network and investors, sector and technology partners.
Find out more at: www.stanley-capital.com
About Laboratoire X.O (“LXO”)
LXO is a dynamic French pharmaceutical company focused on non-generic prescription medicines, that are mostly for chronic or recurring diseases and indications, and with proven efficacy and safety and strong brand awareness. LXO holds marketing authorisations in various therapeutic areas such as Cardiovascular, Central Nervous System, and internal medicines.
Since its foundation in 2015, LXO has grown substantially through a mix of organic growth and numerous acquisitions that have broadened its product portfolio and its range of expertise. Today, the business brings together teams with expertise in quality management, regulatory, logistics/distribution, marketing and sales. LXO operates as an agile platform, outsourcing all production to leading subcontractors in Europe and the US.
The company is committed to being as close as possible to the needs of healthcare professionals and patients for its medicines and medical devices. The business has a turnover of over €90m and a distribution network of more than 80 countries globally.
Find out more at: https://lxogroup.com/