CHEPLAPHARM receives growth capital of €550 Million from two leading global investors

25 Oct, 2022 ∙ 5 Mins Read

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Atlantic Park and GIC will invest a total of €550m in CHEPLAPHARM.
The transaction will strengthen and diversify CHEPLAPHARM’s financial base and help fuel the Company’s growth.

SINGAPORE/GREIFSWALD, 25 OCTOBER 2022 – CHEPLAPHARM AG, a leading international platform for well-established branded medicines, today announced that it has entered into a definitive agreement on a structured investment with Atlantic Park and GIC, two global investment firms, with a total volume of €550m. The investment will strengthen and diversify CHEPLAPHARM's funding as it pursues its next phase of growth.

“We are excited to partner with two well established global players, who bring a thoughtful, strategic approach to their investments”, said CEO and founder Sebastian Braun. “Their commitment underpins the strength and resilience of our business, enabling us to seize the investment opportunities ahead of us. Together with Atlantic Park and GIC, we are in a strong position to further drive the sustainable development of CHEPLAPHARM and its diversified portfolio of proven medicines.”

Both investors have a strong track record in long-term value creation and growth investing.

“Atlantic Park is delighted to support CHEPLAPHARM’s management team as they pursue their growth ambitions,” commented Tripp Smith, founder and Managing Director at Atlantic Park. “Empowering and further strengthening market leaders like CHEPLAPHARM is a core pillar of Atlantic Park's investment philosophy, and we are excited to bring the relationships and expertise of our partners on General Atlantic's Life Sciences team to bear for the company.”

Arjun Khullar, Head of GIC’s Integrated Strategies Group, said: “GIC is looking forward to partnering with CHEPLAPHARM, a leading specialty pharma platform. We are confident in the long-term potential of CHEPLAPHARM thanks to its broad and diversified product portfolio, strong integration capabilities, as well as continued growth from acquisitions.”

CHEPLAPHARM operates a highly scalable and asset-light business model focused on investing in well-established originator brands from research-based pharmaceutical companies. The Company has grown dynamically and profitably in recent years with an average growth rate (CAGR) of 47% over the last decade. In 2021, CHEPLAPHARM continued its profitable growth trajectory and reached a revenue level above the €1bn mark for the first time in its history (+69% year-on-year growth to €1,082.0m). EBITDA increased by 86% to €624m with EBITDA and gross profit margins amounting to 58% and 75%, respectively. Even under the currently challenging macroeconomic conditions, CHEPLAPHARM has shown robust growth in the first half of 2022 with a revenue increase of 20% year-on-year.

The investment will be provided in the form of a subordinated convertible instrument and will mandatorily convert into ordinary shares of CHEPLAPHARM AG.

Credit Suisse, Deutsche Bank and J.P. Morgan acted as Joint Placement Agents to CHEPLAPHARM on this transaction. Latham & Watkins was legal advisor to CHEPLAPHARM.