In September 2016, P Capital Partners provided a subordinated loan with additional commitments to the German family-owned pharmaceutical company Cheplapharm Arzneimittel GmbH in order to partly finance the company’s acquisition of the worldwide rights for two pharmaceutical drugs. Proventus’ total commitment amounts to EUR 60 million.
Cheplapharm Arzneimittel, based in Greifswald in Mecklenburg-Western Pomerania, is embarking on a EUR 340 million investment programme, where the acquisitions of the worldwide rights for established brands, such as the anti-obesity drug Xenical and the beta blocker Dilatrend from F. Hoffmann-La Roche Ltd., form a crucial part. The acquisitions and future growth is supported by a significant hiring effort of highly skilled employees in Greifswald.
P Capital Partners believes that Cheplapharm Arzneimittel has created a robust business model, acquiring pharmaceutical drugs with strong brands from big pharma in order to streamline the portfolio and then use its platform, as well as experience and expertise in supply chain and regulatory compliance management, to grow the company to a prominent medium sized pharmaceutical company in Germany. Key success factors include the ability to hire and retain the right people, and keep a firm control over overhead costs.