In June 2003 we realised our investment in Alcala Farma, one of Spain’s few independent pharmaceuticals businesses.
The exit saw the separate sales of the company’s three activities: Alcala’s generics business, Edigen, was acquired by Pliva Pharma Holding (Croatia's largest quoted pharmaceuticals company); its branded products division, Farmadis, by Chiesi Espana (the Spanish arm of Italian pharmaceuticals conglomerate, Chiesi Farmaceutici) and its contract manufacturing operation, Alcala Farma, was sold back to its management team.
The exit marked the outcome of a successful four-year growth strategy that enabled Alcala to leverage its position as Spain’s fastest growing independent pharmaceuticals business and capitalise on a burgeoning domestic market.
Following Wellcome plc's management buyout in 1995, Alcala successfully initiated its transition from a purely contract manufacturing operation into a more diversified business. Post our investment in 1999, we worked closely with the business to continue this programme, drawing on our experience of working with pharmaceuticals companies across manygeographies including Europe and Latin America. We optimised its product portfolio (both in-house development and in-licensing), grew the fledgling generics business (Edigen) to capitalise on a newly deregulated domestic market and financed the addition of new products to its commercial branded pharmaceuticals portfolio (Farmadis), achieving year-on-year average sales growth of 19%. The introduction of additional management team members and a professional sales function realised Alcala’s final transformation into a sales and marketing driven, integrated pharmaceuticals business.
By 2003 independent value had been created in all three divisions resulting in a demerger. For Pliva, the acquisition presented the opportunity to enter the Spanish market and created a platform from which to promote its existing generics product portfolio. For Chiesi, the acquisition augmented an existing Spanish base, securing a larger market share.