M&A Spotlight: Going global

Rosemont Pharmaceuticals’ annual turnover has more than doubled and EBITDA tripled since the Inflexion-led carve-out from a listed parent in 2020, largely off the back of over 10 new product launches and a £5m expansion in capacity. A focus on M&A is accelerating this impressive growth further, with two international acquisitions announced this summer.

This is good news since the business, one of very few worldwide that develops, manufactures and commercialises liquid medicines once chemical entities come off patent, is a saviour for patients who struggle to swallow tablets. Its manufacturing capacity boost following Inflexion’s funding enabled Rosemont to treat c.450,000 patients last year, and it aims to reach 540,000 this year toward its goal of 1 million.

Having enhanced its UK presence substantially, the firm is now looking further afield for growth. “Our intent to grow internationally aligns us very well with Inflexion’s strengths,” explains Howard Taylor, CEO of Rosemont. The firm is looking at markets that place real value on liquid medicines, meaning its current focus on the US and UK will expand, with Canada, France, and Germany also becoming a priority. Partnering is a simple way to enter new markets, and Rosemont has struck several international deals with Juno in Canada, Jacobson in Hong Kong and Exeltis in Mexico. “Half our recent launches and future pipeline are partnerships,” Howard enthuses.

Rosemont’s stellar organic success means faster growth is needed to maintain the momentum, but a regulatory backlog is creating frustrating headwinds facing all pharmaceutical manufacturers. “M&A is a quicker way to grow,” Howard points out. “Different international regulatory strategies will give the business the opportunity to provide more offerings from the company’s portfolio of over 100 oral liquid medicines.” But Howard feels the strategy is derisked by purchasing on-the-ground businesses with established people and products in target markets.

M&A the means, not the end

“M&A isn’t a strategy in itself but rather it enables us to deliver on our existing growth strategies, including internationalisation,” Howard explains, adding that Inflexion provide financial backing and support to expedite this.

Rosemont formalised its M&A efforts at the end of 2023 with a standalone team for corporate development as well as a dedicated sales function in the US and UK. M&A is now also a standing item on the board agenda, while a specific adviser in the US acts as eyes and ears stateside. The financial team is linked to this central core structure.

This summer Rosemont’s continued efforts came to fruition with the acquisitions of Sabal Therapeutics and its affiliates Metacel Pharmaceuticals, Palmetto Pharmaceuticals, Athena Bioscience and Sarras Health, a group of privately owned specialty pharmaceutical companies and distributors of prescription liquid medicines based in the US state of Georgia. The purchase enables Rosemont to fully commercialise its technologies in the US as it provides a route to directly supply medicines. Rosemont also acquired a Contract Development Manufacturer Organisation in Greece. Pharma-Data specialises in R&D and product development and has its own Good Manufacturing Practice (GMP) approved R&D Galenical and Analytical laboratory in Athens. The company also undertakes product development, dossier writing, technology transfer, licensing and regulatory services.

Accelerating M&A

The firm’s burst of summer M&A isn’t its first foray into this growth channel. In 2022 an introduction from an Inflexion board member led to the purchase of 14 products, helping to expand Rosemont’s portfolio.

The firm’s second acquisition was undertaken in 2023, with the purchase of Lucis Pharma broadening its portfolio further and entering the unit dose / sachet market through the pipeline products. This was an introduction from Rosemont’s Chair, who was sourced through Inflexion and very well connected in the pharma space and effectively provided instant access to this new market with its own regulatory landscape and the people on the ground with the know-how to navigate it.

In future, new M&A opportunities will continue to be supported by Inflexion, Rosemont’s own internal intelligence of businesses in its space, and external advisers. “Because Inflexion do this far more often than we do, we trust their advice as experts on which firms to engage with,” Howard explains, adding that they are also helpful with negotiation alongside internal resource, particularly with larger opportunities.

Looking ahead, Rosemont aims to double turnover over the next four to five years and launch multiple new products per year.  

Howard’s top tip for those seeking to growth through acquisitions? “Get good, experienced people on board as quickly as possible.”

Acquisitive growth has been a key value acceleration strategy for Inflexion since inception, with over 480 completed across more than 30 countries in the last 25 years. Other proven value drivers include digital transformation, international expansion, commercial effectiveness, talent management and sustainability focus. Every business backed by Inflexion, whether a buyout or minority partnership, has access to our support in these areas.