LaborMed Pharma, Terapia and Sindan, the three major drug makers sold over the past three years, were some of the most profitable for sellers, according to a survey conducted by A.T. Kearney, which takes into account the most important deals on the CEE market.
The survey supplied to ZF, reveals the most important deals sealed in South-eastern Europe over the past two years on the pharmaceutical market, as well as their values.
The deal in which Advent International investment fund took over LaborMed was the second biggest in terms of the EBITDA multiple it was assessed at, and was only overshot by the appraisal made by Sanofi-Aventis (in 2006) when it took over 24.9% in Zentiva Czech group at an EBITDA multiple of 15.1.
On the other hand, the Romanian drug maker was valued at a sales multiple of 5, the highest in the survey. In 2006, Terapia was valued at a 4.2 sales multiple and Sindan at 2.2.
"Emerging markets' low costs, the access players on these markets provide to areas with higher growth rates turned CEE markets into appealing targets for global giants. (...)," said A.T. Kearney representatives.
M&A activity in this area was marked by medium and small deals, a signal the pharmaceutical market is changing and will still not witness any major deals. For small firms, mergers are primarily an exit policy when they experience financial difficulties or have a poor product portfolio, A.T. Kearney officials believe.
Last year's deals can be divided into two categories: consolidation deals in the sector of generics and patent drugs, and portfolio expansion deals.
Domestically, the value of pharmaceutical deals went beyond 500m euros in 2006-2008, with the Terapia deal, sealed in 2006, as the biggest. The same year, Actavis Icelandic group bought 100% in Sindan, one of the few deals concluded at an EBITDA multiple of below 10, n
