Clydesdale Bank backs pharma merger with £16m senior funding package
A merger between two leading speciality pharmaceutical companies has secured financial backing from Clydesdale Bank Corporate & Structured Finance.
The bank has agreed a £16m senior funding package to support IS Pharma plc and Sinclair Pharma plc, which are planning to join forces to create Sinclair IS Pharma plc, a substantial, fully integrated pan-European speciality pharmaceutical business.
The package, which consists of a £15m revolving term loan and a £1m revolving credit facility over a four-year term, will replace IS Pharma’s existing £8m facility and provide additional capital to support the growth of the combined business.
IS Pharma is a speciality pharmaceutical company with products focused in supportive oncology, critical care and neurology. Based in the UK, IS Pharma commercialises its portfolio in the UK and Ireland directly. IS Pharma also operates internationally through a strong network of distributors.
Sinclair Pharma is a UK-based speciality pharmaceutical company with products focused in the dermatology, woundcare and oral health areas. Sinclair Pharma directly markets to dermatologists, pharmacies and burns centres from its offices in France, Italy, Germany and Spain and via distribution arrangements for its oral products outside its European country operations.
The new business will be known as Sinclair IS Pharma plc and have a market value of around £130m. It will be headquartered in the UK and will have direct distribution operations in the UK, France, Germany, Italy, Spain and Ireland as well as accessing global markets though its developed worldwide distributor network. The merged group will continue to focus on speciality pharma, notably dermatology and specialist hospital therapies, including supportive oncology, critical care and woundcare.
The companies believe that combining the two portfolios will provide enhanced marketing and cross-selling opportunities. Furthermore the enlarged group will have its own in-house manufacturing and product development capability which will be focused on leveraging the existing portfolio as well as new development opportunities.
The Clydesdale Bank team was led by Stuart Trussler from Corporate & Structured Finance in London, who said:
“This exciting merger between Sinclair Pharma and IS Pharma will allow both companies to maximise the potential of their existing products and distribution infrastructure as well as generate new growth opportunities. We are delighted to be working with them in the next phase of their development. The new funding package will support the enlarged group’s strategic plans as it capitalises on the numerous opportunities available.”
Commenting on the deal, Matthew Hall, Chief Financial Officer of IS Pharma and Sinclair IS Pharma, said:
"The merger will create a stronger, integrated pan-European speciality pharma company with a more diversified product portfolio and wider international reach which will help unlock the significant value within the existing companies. We are delighted to have Clydesdale’s support during this exciting time and look forward to building on this relationship in the future."