Two pharmaceutical companies Vertical/Trigen Holdings LLC and Osmotica Holdings Corp Limited have agreed to merge. No financial terms were disclosed. Jefferies LLC provided financial advice to Osmotica on the transaction. Vertical/Trigen is a portfolio company of Avista Capital Partners.
SAYREVILLE, N.J. and MARIETTA, Ga., Dec. 4, 2015 /PRNewswire/ — Vertical / Trigen Holdings, LLC (“Vertical / Trigen”) and Osmotica Holdings Corp Limited (“Osmotica”) today announced that they have entered into a definitive agreement to combine, creating a world-class, fully-integrated specialty pharmaceutical and generics company. Vertical / Trigen is a portfolio company of Avista Capital Partners (“Avista”), a leading private equity firm. The combined company will be jointly owned by the current owners of Vertical / Trigen and Osmotica. Financial terms of the transaction were not disclosed.
The combination brings together two highly complementary businesses with demonstrated expertise in developing commercially successful pharmaceutical products. Utilizing Vertical / Trigen’s strong front-end commercialization capabilities, the new company will be well-positioned to leverage Osmotica’s portfolio of attractive approved products, differentiated formulation technology, proven R&D function, and high-quality manufacturing facility to effectively compete in the pharmaceuticals sector. The new entity, which will retain the Osmotica name, will continue to offer Vertical / Trigen’s full portfolio of branded and generic products, as well as Osmotica’s successful extended-release formulations upon achieving the required regulatory approval.
In connection with the acquisition, Brian Markison, currently Executive Chairman of Vertical / Trigen and Healthcare Industry Executive of Avista, will become Chief Executive Officer of the new company. Mr. Markison has more than 30 years of leadership, operational, marketing, commercial development, and sales experience in the pharmaceuticals sector. Praveen Tyle, PhD, currently President and CEO of Osmotica, will become Chief Science Officer & President of Science & Technology of the new company. Dr. Tyle has over 30 years of executive and scientific leadership in various areas of drug development in leading pharmaceutical and medical device companies.
“This transaction combines two highly complementary companies with compatible strategic priorities, products, and capabilities,” said Mr. Markison. “With Osmotica’s formulation, development and manufacturing capabilities and Vertical / Trigen’s strong commercialization arm and product portfolio, the combined company has the makings of a fully-integrated branded and generic specialty pharmaceuticals company. I am thrilled to be leading this promising new business and look forward to working with the teams of both companies to ensure that we continue to deliver novel products for patients and meet our strategic objectives going forward.”
David Burgstahler, Co-Managing Partner and President of Avista, said, “We are very excited about this combination, and delighted to be partnering with Osmotica. This combination is part of our commitment to accelerating Vertical / Trigen’s growth, and we are confident that Brian and Praveen’s extensive experience in this sector will help the company maximize the significant opportunity ahead.”
“Osmotica’s innovative global team and differentiated formulation technology have enabled us to develop successful approved products and a strong pipeline,” said Dr. Tyle. “Through our partnership with Vertical / Trigen and Avista, we look forward to building on this strong foundation, and continuing to advance our pipeline to commercial success by providing high-quality pharmaceutical products to physicians and patients.”
Jefferies LLC acted as exclusive financial advisor to Osmotica. Covington & Burling LLP acted as legal counsel to Osmotica. Weil, Gotshal & Manges LLP acted as legal counsel to Vertical / Trigen.
About Vertical / Trigen
Vertical Pharmaceuticals, LLC was founded in 2003 with a mission to develop, market, and acquire products offering therapeutic benefits for patients and healthcare providers. Vertical Pharmaceuticals supplies niche over the counter and prescription pharmaceutical preparations, specializing in women’s health and pain management. Vertical’s medications are marketed by its dedicated sales force throughout the United States.
Trigen Laboratories, LLC is a generic pharmaceutical company offering unique products across an increasing array of categories. Trigen seeks to bring value-driven generic products to its customers, working vigorously with its partners to identify and develop products which face an assortment of challenges. Additionally, Trigen identifies unique marketing opportunities and is steadfast in its pursuit to deliver products to best serve these markets.
Osmotica Holdings Corp Limited is a global specialty pharmaceutical company with a proven history of developing commercially successful pharmaceutical products. The Company uses its proprietary osmotic technology platform and with strategic partners develops and commercializes high quality pharmaceutical products. In addition to the products currently on the market, the Company’s pipeline includes numerous ANDA programs and several innovative neurology-based NDA programs.
Osmotica Holdings Corp Limited and its related companies form an international group of companies with principal operations located in the United States, Argentina and Hungary.
For more information on the Company, please visit Osmotica’s website at www.osmotica.com.
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with approximately $6 billion under management and offices in New York, Houston and London. Founded in 2005, Avista makes controlling or influential minority investments in growth-oriented healthcare, industrial and communications businesses. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses.