German chemotherapy compound maker Zytoservice has attracted offers in a second bidding round from several buyout groups, people familiar with the situation said.
Private equity firms including IK – the former owner of Zytoservice peer GHD – and PAI have submitted bids valuing Hamburg-based Zytoservice at roughly 250 million euros ($278 million), they added.
Compared with initial offers, valuations have come down in the second round of bidding as recent changes to the regulatory regime weighed on prices, one of the people said.
To reduce the cost of cancer treatment, leading German health insurers earlier this year put in place tender processes to procure chemotherapeutic agents, curbing drug suppliers’ margins.
Zytoservice majority owner Capiton earlier this year mandated healthcare advisory firm Ferber to find a buyer for Zytoservice, which was founded in 2002 and employs 200 staff.
The buyout groups declined to comment or were not immediately available for comment.