CVC Strategic Opportunities II ("StratOps II") today announced it has agreed to sell its entire stake in Genetic S.p.A. ("Genetic"), a leading pharmaceutical contract development and manufacturing organisation (“CDMO”) that focuses on the dossier development and supply of products for the Respiratory, Ophthalmic and Oncology therapeutic areas.
The transaction marks a successful exit for CVC following a productive partnership with the company and the founding Pavese family. CVC’s exit will see NB Renaissance and NB Aurora become shareholders alongside the Pavese family, which will also increase its stake.
Headquartered in Fisciano, Italy, Genetic is a specialised and integrated pharmaceutical CDMO focused on the research, development, manufacturing, licensing and promotion of pharmaceutical specialties and medical devices. Its primary expertise is in the development of Respiratory and Ophthalmology products, which are delivered via unit-dose Blow-Fill-Seal technology, pressurised Metered Dose Inhalers, nasal sprays and eye drop/collyrium technologies. Genetic’s products are commercialised by a network of blue chip pharma partners internationally as well as by its own distribution arm (Genetic Farma) in Italy, often under well-recognised local brand names.
During CVC’s partnership with Genetic and the Pavese family, the company has developed significantly, expanding internationally from approximately 20 countries in 2020 to 40+ today, broadened its R&D pipeline and committed to the construction of a new production facility to meet growing global demand for its products. These initiatives, as well as others, have resulted in Genetic more than doubling revenues since CVC’s ownership.
Michael Lavrysen, Partner at CVC Strategic Opportunities, said: "We are proud to have supported Genetic’s impressive growth over the past years. Through strategic investments in R&D, the company has evolved into a leading international CDMO. This successful exit reflects the strong collaboration between our teams, Rocco Pavese and his management team, and we wish Genetic continued success in its next chapter."
This successful exit reflects the strong collaboration between our teams, Rocco Pavese and his management team, and we wish Genetic continued success in its next chapter
Michael Lavrysen Partner at CVC Strategic Opportunities
Giorgio De Palma, Partner at CVC Italy, said: "Genetic is a great example of the high-quality, founder-led businesses we look to support in the Italian market. It has been a privilege to work alongside such a capable team to help the company expand its international footprint while maintaining its deep roots in Italy. We’re pleased to have played a part in the company’s success and look forward to seeing Genetic thrive in its next phase."
Rocco Pavese, CEO and founder of Genetic, said: “Partnering with CVC in 2020, marked a significant turning point in our growth journey and I am proud of the progress we have made in the last five years”. Francesca Pavese, Head of Business Development and Internationalisation at Genetic, stated: “We thank our partner CVC for their support in helping us further professionalise and internationalise the business. As we now move forward under continued family ownership, we look ahead with confidence to continued growth, to new investments and to the development of new therapeutic solutions that can improve patients' quality of life.”
The transaction is subject to customary regulatory approvals.
CVC was advised by Rothschild & Co., PedersoliGattai, FRM Tax, BCG and PwC.