Larka

Carve Out

Customer Experience - Investment firm assessing its potential investment in a Big Pharma carve-out, aiming at offering Contract Manufacturing services and selling APIs. Due-diligence is requested.

 
plug_mod.jpg

Big Pharma Carve Out On Its Way.

Context

An investment firm was assessing its potential investment in a Big Pharma carve-out, making several manufacturing sites a standalone company - Apollo, aiming at offering Contract Manufacturing services and selling APIs. This investment firm requested Larka to support their assessment, including API portfolio analysis, market trends identification, and manufacturing sites due-diligence.

Company Profile

  • European company
  • Investing in Europe
  • 25 employees
  • 1bn EUR of available funds
  • Multi-sector investment approach
  • Long-term investment strategy

Larka's Scope Of Intervention

Larka supported its client on two different phases: business intelligence and due diligence. This assignment covered the following:

  • Business intelligence
    • Apollo's APIs and portfolio anaysis
      • 5- year historical and 5-year forecast (volumes, value & drivers)
      • Trends for in-house manufacturing Vs. outsourcing
      • Recent consolidations or barriers to consolidation
      • CAPEX requirements
      • API & market (final dosage forms) assessment and forecasts
      • Competitors' profiles - size, financials, business models, recent acquisitions
    • Apollo's CMO services analysis
      • Market assessment
      • Apollo capabilities assessment & positioning
      • Key competitors capabilities assessment & positioning
      • Perceptual map & SWOT
    • Potential growth & exit
      • M&A targets & synergies
      • Potential strategic buyers
  • Due diligence
    • Industrial park assessment per site
      • Technological capabilities
      • Type of machinery
      • Maturity, capacities, performances & optimisation
      • Quality audits
    • KPI assessment per site
      • Relevance
      • Data exploitation & corrective actions
      • Performance assessment
    • Human resource assessment per site
      • Site director & management
      • Production management team
      • QA/QC management team
      • BD management team

Conclusion

The investment firm is still under discussion with the top management of the big pharma company. They are regularly in touch with Larka in order to help them prepare key milestones of the process, including face to face meetings with the top management.