Scoop: Open Health fetches almost $1 billion in sale to Astorg
Astorg's pending acquisition of Open Health from Amulet Capital values the medical affairs company just shy of $1 billion, sources familiar with the pending deal tell Axios.
Driving the news: Astorg last week announced plans to acquire the London-based company, concluding a Houlihan Lokey-run sale process Axios first reported on in March.
- The companies did not disclose financial terms.
- Sources tell Sarah that the nearly $1 billion value of the deal equates to a forward multiple of approximately 20x EBITDA. On a trailing basis, that pans out to about 24x EBITDA.
- Amulet is set to generate a roughly 4x return on the investment, sources said.
State of play: Demand for companies like Open Health that offer scientific and complex messaging around commercialization is on the rise. The drivers?
- The increasing volume and complexity of therapeutics are much greater today than ever before.
- Drug marketing spend is increasingly targeted as complex therapies cater to smaller, niche populations.
- Digitization strategies to support engagement with both HCPs and consumers directly.
Background: Many PE firms, including Novo Holdings, Kohlberg & Co, TPG and Areas, have made sizable bets in this category over the last 12 months, with assets commanding EBITDA multiples in the 17x to 22x range.
What we're watching: The sector's next trade. Among those in play...
- Auctus Capital Partners' PharmaLex Group, a Germany-based pharma services company working with Harris Williams on a potential sale, per a previous Axios report.
- RevHealth, which Axios wrote previously is working with Houlihan on a potential sale.
Amulet declined to comment and Astorg did not return requests for comment.