In a significant move within the pharmaceutical contract development and manufacturing organization (CDMO) sector, Thomas H. Lee Partners, L.P. (“THL Partners,” often referred to as “Thlee Partners” in search queries) and Frazier Healthcare Partners (“Frazier”) have jointly announced the acquisition of Adare Pharmaceuticals from TPG Capital. This strategic acquisition marks a new chapter for Adare, which will now operate under the rebranded name Adare Pharma Solutions (“Adare Pharma Solutions”).
This acquisition encompasses Adare’s core CDMO, pharmaceutical technology, and innovative microbiome businesses. Notably, TPG Capital will retain the rights to Adare’s Eosinophilic Esophagitis (EoE) product, which has been established as a separate entity, allowing Adare Pharma Solutions to sharpen its focus on its key strengths.
The partnership with leading investment firms like thlee partners and Frazier is poised to inject fresh momentum into Adare Pharma Solutions. The collaboration aims to accelerate the company’s ongoing efforts in assisting pharmaceutical companies to develop and manufacture groundbreaking medicines that significantly improve patient health and treatment outcomes. The rebranding to Adare Pharma Solutions is a strategic step to emphasize the company’s comprehensive end-to-end CDMO capabilities, its advanced proprietary technologies, and its unwavering commitment to delivering exceptional customer service.
Adare Pharma Solutions’ new logo, reflecting its focus on advanced pharmaceutical technologies and CDMO capabilities following acquisition by thlee partners and Frazier Healthcare Partners.
John Fraher, CEO of Adare Pharma Solutions, commented on the acquisition, stating, “Adare has consistently demonstrated its ability to leverage cutting-edge technologies to develop and manufacture high-value products for our partners and, ultimately, patients. With oral solid drug delivery representing the largest segment in pharmaceuticals, our new relationship with thlee partners and Frazier provides us with the resources to strategically invest in and further expand our global capabilities as a specialized CDMO. We will continue to focus on the pharmaceutical and microbiome technology areas that have been instrumental to our growth. We extend our gratitude to TPG for their valuable partnership and support over the past decade.”
Adare Pharma Solutions distinguishes itself through the application of a suite of proprietary technologies within its CDMO business. These innovative technologies are crucial in enabling customer success and include:
- Microcaps®: A sophisticated taste-masking technology utilizing solvent or aqueous-based coacervation processes to improve palatability of medications.
- Diffucaps®: Incorporates release-controlling polymers and protective coatings onto drug-layered cores, granules, or crystals, allowing for precise control over drug release profiles.
- MMTS™ Multi Mini Tablet System: Employs functional membranes applied to miniature cylindrical tablets (1.0-2.0 mm) to finely regulate drug release rates.
- Optimµm®, Stratµm®, and Unisun®: Advanced microsphere and microcapsule technologies that provide unparalleled control over release rates and facilitate expanded delivery forms, including liquid, injectable, and otic applications.
- Microbiome Thermal Inactivation Technology: Specifically designed to meet the unique needs of pharmabiotic microbiome product development and manufacturing.
Joshua Nelson and Megan Preiner, Managing Directors at thlee partners, jointly expressed their enthusiasm for the investment: “We maintain a strong conviction in the positive trends driving growth in outsourced pharmaceutical services. We are incredibly excited to invest in Adare, a proven leader in the development and manufacturing of transformative medicines for pharmaceutical companies worldwide. Thlee partners is committed to leveraging our extensive healthcare experience and operational expertise to support Adare in building upon its impressive track record. We aim to help them further enhance their leading products and technologies to better serve their customers, while also actively pursuing new strategic opportunities, including potential acquisitions, to facilitate their long-term growth objectives.”
Nathan Every, General Partner at Frazier Healthcare Partners, added, “Frazier has rigorously evaluated numerous potential CDMO investments, and we are particularly delighted to partner with Adare. We believe Adare is a market leader exceptionally well-positioned for significant expansion and sustained success. Frazier looks forward to a fruitful partnership with Adare in this exciting next phase of growth.”
Todd Sisitsky, Co-Managing Partner of TPG Capital, reflected on the past decade, stating, “From our initial acquisition of Eurand a decade ago and the subsequent establishment of Adare in 2015, we are proud to have collaborated with John Fraher and the entire management team in building a premier global CDMO. Through their dedication to innovative science and proprietary drug delivery and microbiome technologies, Adare’s products have positively impacted millions of patients through partnerships across the pharmaceutical industry. We wish Adare Pharma Solutions and its new partners continued success.”
The financial terms of the acquisition remain undisclosed. RBC Capital Markets served as the financial advisor to thlee partners and Frazier, with legal counsel provided by Kirkland & Ellis. Debevoise & Plimpton acted as legal advisor to TPG Capital and Adare Pharmaceuticals.
About Thomas H. Lee Partners, L.P. (Thlee Partners)
Thomas H. Lee Partners, L.P. (“thlee partners”) is a premier private equity firm focused on investing in middle market growth companies primarily based in North America. The firm concentrates its investments within four core sectors: Consumer, Financial Services, Healthcare, and Technology & Business Solutions. Leveraging deep sector expertise and dedicated internal operating resources, thlee partners collaborates with management teams to transform and build enduring, high-value companies. Since its inception in 1974, thlee partners has raised over $25 billion in equity capital, invested in more than 150 companies, and executed over 400 add-on acquisitions, representing an aggregate enterprise value at acquisition exceeding $200 billion. For more information, please visit www.THL.com.
About Frazier Healthcare Partners
Founded in 1991, Frazier Healthcare Partners is a leading private equity firm exclusively dedicated to the healthcare sector. With over $4.8 billion in total capital raised, Frazier has invested in more than 200 companies, ranging from buyouts of profitable healthcare services companies to venture capital and company creation. Frazier emphasizes a partnership approach with strong management teams, utilizing its internal operating resources and extensive network to build exceptional companies. Frazier has offices in Seattle, WA, and Menlo Park, CA, and invests broadly across the U.S., Canada, and Europe. Further details are available at www.frazierhealthcare.com.
About Adare Pharma Solutions
Adare Pharma Solutions, formerly Adare Pharmaceuticals, is a leading specialty CDMO and a global provider of advanced pharmaceutical technologies. The company utilizes its proprietary pharmaceutical technology and microbiome platforms to develop innovative and improved medicines and therapies for the global market. Adare Pharma Solutions provides co-development and contract services to biopharmaceutical companies worldwide, developing and manufacturing products marketed by its partners. Adare has a proven track record, having developed and manufactured over 40 products sold by partners in more than 100 countries, including well-known brands like Lacteol™, Zoolac™, and Viactiv™, as well as numerous branded and complex generic products. To learn more, visit www.AdarePharma.com.
About TPG
TPG is a leading global alternative asset firm established in 1992, with approximately $83 billion in assets under management. TPG operates from a global network of offices, including locations in Austin, Beijing, Fort Worth, Hong Kong, London, and New York. TPG’s investment platforms span a diverse range of asset classes, including private equity, growth equity, real estate, and public equity. TPG is committed to creating dynamic products and options for its investors while maintaining rigorous discipline and operational excellence across its investment strategies and portfolio performance. Additional information can be found at www.tpg.com and on Twitter @TPG.
Contacts
Media and Investor Inquiries
For Thomas H. Lee Partners, L.P. (Thlee Partners): Sard Verbinnen & Co Robin Weinberg/Devin Broda, +1 (212) 687-8080
For Frazier Healthcare Partners: Carol Eckert, [email protected], +1 (206) 621-7200
For Adare Pharma Solutions: McDougall Communications Elizabeth Harness, [email protected], +1 (585) 435-7379 Christopher Knospe, [email protected], +1 (716) 440-5580
For TPG: Luke Barrett, [email protected], +1 (415) 743-1550
