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Permira to Acquire Neuraxpharm for $1.9bln

Nigel Firth
Nigel Frith trader
Updated 22 Sep 2020

Practice Stock Trading

Permira, the UK-based private equity firm, agreed to acquire Neuraxpharm for nearly $1.9 billion, including debt, from its British counterpart Apax. Permira is paying an amount that is  around 13 times multiple of Neuraxpharm’s expected 2021 core earnings.

The aim of the deal is to capitalize on the expected surge in demand for the company’s main products e.g. antidepressants and painkillers.

Apax Partners purchased Neuraxpharm four years ago, before merging it with Invent Farma. The pharma firm has an annual revenue of 460 million euros, while it employs 850 staff.

Apax said it expects the deal to generate gross multiple on invested capital of 3.5 times and a gross internal rate of profit of 36%.

“Since [the takeover in 2016], and with the support of Apax VIII, Neuraxpharm has experienced rapid international expansion both through greenfield operations and several acquisitions, transitioning from a local player to a leading pan-European specialty company that covers 80% of the European market,” Apax said in the statement.

Permira to Acquire Neuraxpharm for $1.9 billion September 2020

Apax share price gained over 2% this morning.


Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.