Print“The company is very well positioned for continued strong growth by virtue of its critical therapy, long-standing relationships with hospital administration and exceptional management team.”
Madison Dearborn Partners is acquiring a majority ownership position in Ikaria in a deal that values the specialty drugmaker at approximately $1.6 billion.
Ikaria provides the Inomax therapy package, an inhaled nitric oxide therapy for the treatment of newborn babies with respiratory failure. The device widens the opening of blood vessels in the lungs, improving blood oxygenation. Ikaria's Inomax devices are installed at more than 650 hospitals throughout North America. With Madison Dearborn's support, Ikaria will accelerate its expansion into international markets such as Japan, India and China.
“The company is very well positioned for continued strong growth by virtue of its critical therapy, long-standing relationships with hospital administration and exceptional management team,“ says Tim Sullivan, a Managing Director at Madison Dearborn.
Ikaria’s investors, a group that includes New Mountain Capital, Arch Venture Partners, Venrock, 5AM Ventures, and The Linde Group, will receive approximately $880 in cash and retain a 45 percent stake in the new company. Ikaria was formed in 2007 in an approximately $670 million cash and stock merger of INO Therapeutics, a leader in gaseous drugs, and Ikaria, a biotech company. New Mountain Capital was the lead investor in that deal, investing $220 million for majority control. The Linde Group, owner of INO, retained a 17 percent stake in the new Ikaria.
While patents on some of Ikaria’s portfolio expire soon, the company is testing new applications of inhaled nitric oxide in clinical trials. The Inomax system is in a late-stage trial for use in treating bronchopulmonary dysplasia, a serious lung condition that affects infants. Meanwhile, the company is running Lucassin, a therapy for hepatorenal syndrome, a rare and often fatal condition of advancing kidney failure in patients with cirrhosis or other severe liver diseases, through a late-stage trial as well.
Ikaria’s research division, with a pipeline focused on pulmonary arterial hypertension, chronic obstructive pulmonary disease, and congestive heart failure will be spun-out into another company backed by existing Ikaria investors, and pre-funded with approximately $80 million in cash.
Ikaria withdrew plans for an IPO in November 2010 due to weak demand despite slashing the size of its offering. The New Jersey-based company had hoped to raise as much as $195 million.
December 27, 2013
http://www.burrillreport.com/article-buyout_firm_acquires_majority_stake_in_ikaria.html
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