PE Firm-Owned Par Pharma Files for $100 Million IPO

Published: Mar 16, 2015

PE Firm-OwnedPE Firm-Owned Par Pharma Files for $100 Million IPO
March 13, 2015
By Riley McDermid, Breaking News Sr. Editor

Private equity owned drugmaker Par Pharmaceutical Holdings Inc has filed an S-1 form for an initial public offering with the U.S. Securities and Exchange Commission Friday, saying in the filing it is aiming for a nominal fundraising target of about $100 million.

The Woodcliff Lake, NJ-based generic drugmaker is wholly owned by private equity shop TPG Capital. Its filing did not name the number of share on offer, but did say it will list under the ticker sign PRX, though the bourse where it will be listed remained unnamed.

Reuters speculated last month that Par Pharma might raise around $500 million as it attempts to go public, a price point that would value the company somewhere around the $4 billion mark. How much a company raises to go public determines its registration fees with an exchange.

The company said the bookrunners on the deal will be J.P. Morgan, Goldman, Sachs & Co. and Morgan Stanley.

Par Specialty Pharmaceuticals, formerly Strativa Pharmaceuticals, has a portfolio of around 95 generic drugs, and was purchased lock, stock and barrel by TPG Capital for $1.9 billion in 2012. That followed a bruising proxy fight for power led by its activist shareholders Relational Investors, which pushed hard for a sale.

The company said it will use the net proceeds from the offering to pay down debt and roll into working capital.

Par Pharma spent most of 2014 making deals and rounding out its offerings, snapping up Indian researcher Ethics Bio Lab Pvt for around $20 million and injectables company JHP Group Holdings Inc for $490 million.

BioSpace Temperature Poll
Vertex Pharmaceuticals made news last week when it terminated leases on three properties in Cambridge, Mass, that freed up 313,000 square feet of space in the Genetown area. The company has spent a significant part of 2014 consolidating its operations on the South Boston waterfront, leasing 291,000 square feet of office space at West Kendall Street in Cambridge’s Kendall Square. So we wanted to ask the BioSpace community: Is Boston going to be getting more biotech leases anytime soon, or fewer tenants?

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