Seqens majority owner looking to sell API maker amid record-high run in healthcare valuations: report
Three years after it rebranded from Novacap, Seqens, a French pharmaceutical manufacturer and ingredient supplier is reportedly being prepped for sale.
The sale comes as Seqens’ private equity owners — its majority owner is Eurazeo — are hoping to cash in on the current high valuations in the healthcare market, Reuters reported Monday, citing two unnamed sources close to the matter.
Eurazeo, a French investment firm, has charged JP Morgan with finding a buyer for the company, the report said, which could be valued at upwards of $2.4 billion (2 billion euros). Seqens makes and distributes aspirin and paracetamol, among other API — which brought in earnings of around $180.9 million (150 million euros) in the company’s most recent fiscal year. That means its sale value could be 15 times that of its core earnings.
The company is expected to be in play for peer companies such as Recipharm, Lonza, Cambrex and Samsung Biologics, Reuters said.
In recent years, Seqens has grown its footprint through acquiring companies such as Germany-based Uetikon, China’s Yangzi Pharm Chemical and US-based PCI Synthesis. Reuters reported that in 2016, when the company was still known as Novacap, Eurazeo took on a 67% stake through a deal that valued the company at 654 million euros, including debt, from private equity firm Ardian. Ardian retained an 18% stake in Novacap at the time.
Seqens did not immediately respond Monday to a request for comment from Endpoints News.
News of the potential sale comes just six months after Seqens invested $35 million (30 million Euros) in a new high potent active pharmaceutical ingredient unit at its Villeneuve-La-Garenne site in a high-profile ceremony attended by France president Emmanuel Macron.
That project, also known as UPP30, was carried out through a partnership with Mithra, a Belgian biotech company. In a press release at the time, Seqens outlined a three-tiered process to “revitalize our industrial footprint”: developing technical skills through a focus in hiring young workers, emphasizing innovation and R&D, and ensuring the high quality and performance of its products.
“Our sustainability will depend on the ability of our companies to innovate and boost productive investment in our territories,” Seqens CEO Pierre Luzeau said in August.
Social: Seqens website