CVC Capital Partners leads consortium to acquire controlling stake in Alvogen


Consortium will provide funds to help Alvogen become a leading generics player worldwide

A consortium of investors led by European private equity firm CVC Capital Partners has taken a majority stake in Alvogen, a privately held US pharmaceutical company.

The consortium also includes Singapore investment company Temasek and New York investment group Vatera Healthcare Partners.

Terms of the transaction have not been released, but the deal is said to value Alvogen at around US$2bn.

CVC said it has bought the stake from Pamplona Capital Management, which acquired a majority stake in Alvogen just over 12 months ago. Aztiq Pharma, the investment vehicle led by Robert Wessman, Alvogen‘s Chief Executive, will retain a 'significant' stake with Pamplona retaining a 'small stake' following the transaction. Robert Wessman will continue as the company’s CEO.

CVC said Alvogen, based in Pine Brook, NJ, 'has delivered six consecutive years of strong revenue and profit growth, expanding from its original base in North America to commercial operations in 35 countries around the globe'.

The company now has regional hubs in North America, Eastern Europe and Asia Pacific, with North America its largest market with more than 60 pipeline ANDA filings. It currently has in excess of 200 pharmaceutical projects in development and registrations and 350 marketed products.

Wessman said: 'Alvogen has established itself as one of the fastest-growing generic pharmaceutical companies in the industry, delivering double-digit revenue and profit growth annually since 2009. The Group has transformed from being a domestic US business to a global player.'

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He added that the investors would provide 'experience and additional resources to help accelerate our strong momentum and take Alvogen towards its ambition of being one of the leading generics players in the world today'.