Category Archives: Media Archive

Novumed advises private equity investor Paragon Partners on its planned acquisition of the operating business of medical supplier Balda AG

Equityguide - Balda_EN

MUNICH, Oct 06, 2015 – Balda AG sells entire operating business, distributions of EUR 2.00 per share, approval by AGM required.
Balda AG concluded a purchase agreement concerning the sales of its entire operating business for a purchase price of 62.9 million EUR. The buyers are acquiring companies, which are managed by investment company Paragon, Munich. The sale comprises all operational units of the Balda Group, i.e. Balda Medical GmbH & Co. KG, Bad Oeynhausen, Balda C.
Brewer, Inc. and Balda Precision, Inc., both in California, USA, as well as Balda Medical Systems SRL, Romania and further assets. “Within the scope of our dialog with investors and possible cooperation partners, we have noticed increasing interest in our operational units. This resulted in specific negotiations, which, ultimately culminated in the agreement that was signed today”, says Oliver Oechsle, sole Management Board member of Balda AG. “The purchase offer by Paragon Partners did not only exceed the fair value calculated by external experts but will also give Balda the opportunity to continue to develop as an individual company”, Oechsle also states.
Paragon Partners is a private and owner-managed investment company, aiming to sustainably improve the strategic and operating business of its shareholdings. Paragons
founding partner Krischan von Moeller adds: “Under the successful management team, the Balda Group will continue as an operational unit in accordance with today’s strategic
orientation. We will support Balda to actively make use of growth opportunities in the areas of medical technology as well as pharmaceutical and, if needed, may provide further equity for organic and external growth.”
Oliver Oechsle says: “By selling the operating business of the Balda Group, we are creating a significant increase in value for the shareholders. But not only the shareholders will benefit, also our employees and customers. Paragon Partners has confirmed that it will maintain the current strategic orientation and organizational structure and that it will retain all employees of Balda AG as well as the management. This means stability and continuity. Balda pursues the goal of continuing to further develop over the next few years – both organically and strategically so as to achieve an order of magnitude that will offer us completely new courses of action. Balda stays Balda!”
All in all, the company receives a gross amount (including profits to be paid out for the past business year) of EUR 66.7 million (before exemptions, taxes and costs) from the sale. The agreement is subject to the condition precedent of approval by the annual general meeting of Balda AG as well as the approval by the anti- trust authorities. The Management Board will shortly send out invitations for the annual general meeting scheduled for 19 November 2015.
Moreover, the Management Board and the Supervisory Board intend to suggest a dividend payment of EUR 1.10 per share. Also, on approval of the purchase agreement the
Management Board and the Supervisory Board plan to reduce the share capital from currently EUR 58,890,636.00 to EUR 5,889,063.00 and to pay back to the shareholders the
share capital thus released. This corresponds to an amount of another EUR 0.90 per current share. Additionally, the Supervisory Board will device a new business model for the AG and present it to the annual general meeting. In this context, the annual general meeting shall also adopt a decision concerning a change of the business purpose of the company and the company name.

Paragon Partners was advised by Novumed Life Science Consulting & Advisory (Commercial Due Diligence).

About Paragon Partners
Paragon Partners is a private, Munich-based investment firm with € 650m of assets under management. Paragon Partners invests in established, mid-sized companies with significant operational value creation potential.

About Novumed
Novumed is an independent strategy consulting & advisory services firm for the life sciences industry. With offices in the US and Europe, Novumed is one of the few global advisors with a clear industry focus. The experienced management consultants and advisory team support life science companies, industry groups and investors in the preparation and implementation of market strategies, innovation strategies and strategic financial transactions.

(Source: MAJUNKE Consulting, www.deal-advisors.com)

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Novumed Life Science Consulting & Advisory advises Equistone on sale of Uetikon Chemie to Novacap

Deal advisorsMUNICH, May 20, 2015 – Following the acquisition as part of a management buy-out in 2011, funds managed by Equistone Partners Europe (Munich, DE / Zurich, CH) sold their majority
shareholding in pharmaceutical fine chemicals manufacturer Uetikon Chemie (Lahr, Germany) to Novacap (Lyon, FR) for an undisclosed amount. Novacap is majority owned by
Ardian, a Europe-based private equity firm. For Equistone, the transaction was supported by Novumed Life Science Consulting & Advisory (Commercial Vendor Due Diligence), Lazard (M&A), P+P Pöllath & Partners (Legal), KPMG (Financial & Tax) and Ecosens (Environmental Vendor Due Diligence).

Novumed is an independent strategy consulting & advisory firm with a clear industry focus on pharma, medical technology and diagnostics. In recent years, Novumed has frequently
supported major European investors in the acquisition or divestiture of life science assets.

(Source: MAJUNKE Consulting, www.deal-advisors.com)

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Pharma Data Show Different Prescription Behavior of Eastern German Doctors

Bionity Article Efficient SellingFor instance, there are big differences in the prescription habits of high priced biologics in Eastern and Western Germany. On average pharmaceutical companies earn more than double the amount in the East, per physician and year, than in the East with certain biologics. This results mainly from the historically/culturally lower price sensitivity of doctors in Eastern Germany. Pharmaceutical companies may sell much more efficiently when combining the use of pharma data, primary research and a correlation of selected data. In addition to this article, the Novumed publication “Efficient Selling in Pharma” features two case studies and important insights on the efficient use of pharma data.

For further information download full article free of charge: Download Bionity article Efficient Selling (PDF)

Novumed has developed a series of “Spotlight” publications on issues and topics that impact our clients. These publications offer valuable insight into current issues and themes in the life science industry. These Spotlights are available at no charge upon request: Request Novumed Spotlight Efficient Selling (PDF)

Medical Technology – A Safe Haven for Volatile Industries

Bionity-Medical-Technology-1In times of economic uncertainty, industry groups from various sectors suffer from the volatility of their core businesses. Companies from sectors, such as electronics, automotive supply, plastics and others, often face threatening situations whenever the general economic climate is rough. One of the many examples of companies that balanced their volatile businesses early on is Agilent, a company well known for their electronic test & measurement products. Agilent decided to launch a life sciences business unit in 2000. The new unit played an important part in keeping the company profitable despite the collapse of the electronic measurement unit’s profits during the financial crisis. This and other examples highlight the growing importance of medical technology as an attractive but stable market, which attracts industry groups from various fields. But which factors are responsible for the attractiveness of this market and which industries can benefit from an expansion into medical technology?

For further information download the full article free of charge: Download Bionity article Medical Technology (PDF)

Novumed has developed a series of “Spotlight” publications on issues and topics that impact our clients. These publications offer valuable insight into current issues and themes in the life science industry. These Spotlights are available at no charge upon request: Request Novumed Spotlight Medical Technology (PDF)

China: Fastest Growing Biotech Market Worldwide

447_201000093_forum2.qxdFollowing a survey on European biotech companies, Novumed Life Science Consulting recently concluded an exclusive study on therapeutic biotech companies of the Asian Pacific region. China now positions as number 5 of most innovative biotech countries behind the US, the UK, Germany and Australia. In recent years, Chinese government incentives, low labour costs and well trained personnel sparked an increase in the number of innovative small biotech companies; China has moved from manufacturer to innovator. China has long been in the focus of attention as an attractive pharma market for two main reasons. First, its 1.3 billion population holds a tremendous sales potential. Especially the rising middle class has the necessary purchasing power to afford western branded drugs. Secondly, low labour costs made it attractive for many pharma companies to outsource part of their manufacturing and services to Chinese contractors. Since a long time, Chinese CROs (contract research organisations) provided services ranging from combinatorial chemistry and high throughput screenings to preclinical tests. However, what about innovation? In Novumed’s exclusive Asian biotech study, a team of 9 analysts and consultants investigated more than 4470
biotech firms, focusing on small companies with less than 600 employees and own drug development.

For further information download the full article free of charge: Download Biotechnology Journal article Medical Technology (PDF)

China: Fastest Growing Biotech Market Worldwide

2010-03_Bionity_China_ENovumed Life Science Consulting recently concluded an exclusive study on therapeutic biotech companies of the Asian Pacific region.

China now positions as number 5 of most innovative biotech countries behind the US, the UK, Germany and Australia. In recent years, Chinese government incentives, low labour costs and well trained personnel sparked an increase in the number of innovative small biotech companies; China has moved from manufacturer to innovator. China has long been in the focus of attention as an attractive pharma market for two main reasons.

First, its 1.3 billion population holds a tremendous sales potential. Especially the rising middle class has the necessary purchasing power to afford western branded drugs. Secondly, low labour costs made it attractive for many pharma companies to outsource part of their manufacturing and services to Chinese contractors. Since a long time, Chinese CROs (contract research organisations) provided services ranging from combinatorial chemistry and high throughput screenings to preclinical tests. However, what about innovation?

In Novumed’s exclusive Asian biotech study, a team of 9 analysts and consultants investigated more than 4470 biotech firms, focusing on small companies with less than 600 employees and own drug development. Companies offering only service or diagnostics were excluded and the focus of analysis concentrated on innovative companies, i.e. those with own drug R&D. China was particularly difficult to research as few associations exist that would help to identify companies and information on websites is scarce or even inaccurate. Hence, the team conducted direct research on ground. By speaking to many companies, information on company size, funding and detailed pipeline status was obtained that paints a picture of the Chinese biotech landscape in unprecedented detail.

For further information download the full article free of charge: Download Bionity article China (PDF)

Biotech on the rise: Diabetes

Biotech on the rise: DiabetesThe most extensive investigation of the European biotech industry to date has identified diabetes as the indication with the highest number of ongoing research projects among pharma- and biotech treatment of diabetes, achieving total revenues of 21 billion US $. For this study, the Novumed team consisted of 7 team members who investigated more than 4600 European biotech firms across 30 European countries (including Iceland, Slovakia, etc.) identified, all of which have at least one compound in preclinical or clinical development. When seen in context with Sweden’s approximately 9 million inhabitants these numbers are indicative of extraordinary productivity. In Denmark, which is approximately companies. Sweden and Denmark have been identified as the biotech hotspots with highest productivity. In the wake of what is most likely the largest and most detailed study of the European biotech industry to date the team of Novumed Life Science Consulting has identified …

For further information download the full article free of charge: Download Biotechnology Journal article Biotechnology Europe (PDF)

Great opportunities for developers of biosimilars

2008-12_Bionity_Biosimilars_EBetween 2009 and 2019 blockbuster biopharmaceuticals with a total value of over 50 billion $US will lose patent protection. Biopharmaceuticals or biologicals are drugs synthesized by “recombinant DNA technology”, a gene technological process developed in the mid seventies. In contrast to classic lowmolecular drugs like Aspirin®, for example, which can be produced by way of chemical synthesis due to their simple molecular structure, biopharmaceuticals are highly complex polypeptides and proteins. Consequently the production of biopharmaceuticals like Avastin® or Herceptin® from Roche/Genentech or Neulasta® from Amgen requires a complex production process which is based on the natural biosynthesis of…

For further information download the full article free of charge: Bionity article biosimilars (PDF).

For in-depth analysis, Novumed provides sales data for the 200 highest revenue blockbuster drugs worldwide. The information is available through the Novumed Blockbuster 200 web interface as well as the Novumed Blockbuster 200 mobile applications for iOS and Android.

In Focus: Market – European Firms Lead Global Pharma Industry, While US Companies Dominate Biotech Market

2007-08_PharmaBioWorld_PharmaIndustryA recent study, which compared pharmaceutical and biotech companies according to geographical locations has found that European companies lag far behind in biotech. Around 16 of the 40 top pharmaceutical companies hail from Europe with a combined sales volume of US $181 billion while 13 companies are from US with a total sales volume of 166 billion. On the other hand, out of 100 leading biotech companies, around 65 are located in the US. The US is considered the most important market for pharmaceuticals worldwide. Interestingly, the combined sales of the global European pharma companies exceed that of the US companies. This result was obtained by a recent study conducted by the Munich based consulting company Novumed Life Science Consulting. Among the 40 top pharma companies around 16 hails from Europe, with a combined sales volume of US $181 billion in pharmaceuticals alone. This figure only includes…

For further information download the full article free of charge: Bio Pharma world article Global Pharma Industry (PDF).

In Focus: Logistics – Lack of in-transit temperature control may influence drug effectiveness

Article-coverstoryA recent study conducted by the Munich-based Novumed Life Science Consulting analyses the increasing demand for temperature controlled transport and storage of pharmaceutical products. High humidity, strong agitation, bright light and incorrect temperature storage during transport may have severe consequences on pharmaceutical products. Temperature and humidity variations during handling and transport may destroy the active components of these products. Vaccines, biologicals and diagnostics are especially sensitive to external influences. A major problem with these temperature-sensitive products is…

For further information download the full article free of charge: Bio Pharma world article Logistics Temperature Control (PDF).