Chicago-based Valinor Pharma Acquired by Grünenthal in $250 Million Deal

Chicago-based Valinor Pharma Acquired by Grünenthal in $250 Million Deal

by John Conrad| Jul 24, 2024| NewsBrief

Valinor Pharma, LLC ("Valinor") has announced its acquisition by Grünenthal in an all-stock deal valued at approximately $250 million in upfront cash consideration. This acquisition marks a significant milestone for Valinor, which has owned the global rights to Movantik® (naloxegol) since early 2023.

Key highlights of the deal include:

* Grünenthal becomes the owner of the global rights to Movantik® (naloxegol)
* Valinor had leveraged Apollo Care's commercial platform to grow Movantik volume in the U.S. while reducing gross-to-net and operating costs
* First quarter financial highlights for Valinor include revenue growth of 150% and highest-ever EBITDA

Todd N. Smith, CEO of Valinor, commented on the acquisition: "Today's announcement recognizes the significant value we have built for our shareholders and patients. This acquisition comes at a great time as Valinor has implemented an innovative commercial platform of sales and patient access tools that will provide Grünenthal with a strong foundation for future growth."

Over the past 12 months, Valinor has partnered with Apollo Care to implement a suite of integrated sales, analytics, patient access, and gross-to-net management solutions. These efforts have resulted in record prescription growth while simultaneously reducing costs.

Ben Bove, President of Valinor, highlighted the company's achievements: "We are proud of the remarkable achievements of our team. In short order, we have been able to transform the commercial and financial performance of Movantik by executing on an innovative commercial strategy that has reduced gross-to-net costs while simultaneously driving prescription growth and improved access for patients."

Movantik's performance, which had been declining prior to Valinor's acquisition, has shown consistent growth since 2023. In the first quarter of 2024, Valinor's net revenues were 150% higher than the same period in 2023, with the business recording its highest-ever EBITDA.

Clarke B. Futch, Chairman of Valinor and CEO of HealthCare Royalty, praised the company's strategy: "The strategy executed by the Valinor team combined with the innovative Apollo Care solutions has substantially transformed Movantik in a brief amount of time. The performance of Valinor demonstrates that differentiated products like Movantik can still be very successful in mature markets with the right strategies, tools, and execution."

RBC Capital Markets, LLC acted as lead financial advisor to Valinor, with Wells Fargo also serving as financial advisor. McDermott Will & Emery LLP provided legal counsel to Valinor for the transaction.

This acquisition represents a significant development in the pharmaceutical industry, highlighting the potential for innovative commercial strategies to revitalize mature products and create substantial value for shareholders and patients alike.

Read the press release

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