The opportunity
Rosemont develops, manufactures and supplies oral liquid medicines for patients who have difficulty in swallowing tablets and capsules. Its customers include hospitals, wholesalers and retail pharmacies. Rosemont’s range of medicines improves the lives of patients with swallowing difficulties, typically the elderly and young children.
Before we became involved with the business, Rosemont was owned by Savient, a quoted US biotech business. The Rosemont management team had identified a clear opportunity to grow the business in a market experiencing growth driven by an aging population and a greater understanding and recognition of dysphagia (a medical condition which prevents swallowing tablet or capsule pharmaceuticals). At the time of acquisition, liquid oral delivery accounted for less than 1% of UK prescription volumes.
The strategy
Following our acquisition of Rosemont from Savient, which was seeking to raise capital to focus on its biotech pipeline, we invested to support the ambitions of the management team. Throughout, we maintained a sharp focus on growth opportunities, including streamlining the NPD process and placing greater emphasis on the pipeline. This was particularly relevant to the business’ international ambitions, and we worked with management to implement a European strategy which would be the catalyst for a growing global footprint.
We also implemented a £6m capex programme to enhance the company’s world class manufacturing capabilities and increased the strength and depth of the senior team. Following the appointment of a new Chairman (Kevin James, ex-UK MD of Wyeth) at the time of the acquisition, we brought in a Head of Quality and a Clinical Director.
The result
Our ownership saw the company’s portfolio increase from 58 to 94 products, while EBITDA more than doubled from £9m in 2006 to £19.2m in 2012.
Rosemont was sold to Perrigo Company, a $10bn US listed Pharmaceuticals business, for £183m in February 2013, generating a 3.2x return on our invested capital.
