iNova Pharmaceuticals

Sector HealthCare
Industry Pharmaceuticals
Location Asia Pacific and Africa
Investment Date December 2006
Original Deal Size A$451m
Realisation Date December 2011
Realisation Deal Size A$700m

Company Description

Acquired from 3M, iNova Pharmaceuticals is a manufacturer and distributor of prescription and over-the-counter (“OTC”) pharmaceutical products in Asia Pacific and South Africa.

Investment Rationale

Major attractions of the opportunity were:

  • Strong market positions across the core product range, with excellent brand and product recognition.
  • Organic growth prospects existed by virtue of market segments (e.g. skin cancer, weight control) and / or geographic exposure (e.g. Asia).
  • Diversified earnings provide a stable cash flow base to allow investment in growth.
  • Established sales and marketing infrastructure was in place to create a significant and attractive opportunity to expand the product range through in-licensing and / or product acquisitions.
  • Good exit prospects through an IPO or trade sale as the business continues to exploit its substantial growth opportunities.

Ironbridge Value Added

Ironbridge added value to iNova in several ways:

  • We invested heavily in new products and in sales and marketing at iNova, leading to strong and consistent earnings growth. 
  • The Ironbridge Portfolio Team led a key project in 2009 to improve manufacturing margins and enhance supply chain reporting.
  • The Ironbridge Portfolio Team led a comprehensive supply chain review that lowered risk and improved margins.
Return to Case Studies.