Target Information

Domixtar Pharmaceuticals, formed through the merger of Doppel Farmaceutici and Mipharm, is positioned as a leading contract development and manufacturing organization (CDMO) in the pharmaceutical sector. Doppel Farmaceutici, established in 1994, and Mipharm, founded in 1998, both hail from Italy and have built a reputation for providing fully integrated drug development and manufacturing solutions. The new entity will be under the leadership of Maurizio Silvestri, the current Executive President of Mipharm, and is projected to generate an aggregate turnover of approximately 180 million euros in 2023.

The merged organization combines the strengths of both companies to service a global portfolio of over 100 blue-chip clients. Domixtar Pharmaceuticals offers an extensive suite of technologies and products across liquid, solid, and semisolid dosage forms, catering to diverse applications including anti-tumor, anti-inflammatory, cardiovascular, and metabolic treatments.

Industry Overview

The pharmaceutical sector in Italy is characterized by its robust CDMO market, which is increasingly vital for pharmaceutical companies looking to enhance their product development capabilities without overrelying on in-house resources. With a growing demand for outsourced development and manufacturing services, companies are investing to expand their operational capabilities and technological expertise.

Italy serves as a strategic hub for pharmaceutical operations in Europe, benefiting from a skilled workforce and advanced infrastructure. The country has made significant strides in fostering innovation within biotechnology and pharmaceuticals, supported by both government initiatives and private investments.

The Italian CDMO market has seen substantial growth over the past few years, driven by the increasing complexity of drug formulations and the need for flexibility in production processes. As pharmaceutical companies seek to optimize their supply chains and focus on core competencies, partnerships with CDMOs like Domixtar Pharmaceuticals are becoming more prevalent.

Moreover, the rising demand for specialized therapies, including personalized medicine and biologics, has prompted CDMOs to enhance their offerings significantly. As Domixtar Pharmaceuticals aligns itself with these industry trends, it is well-positioned to capitalize on the growing market opportunities.

Rationale Behind the Deal

This strategic merger aligns with both Trilantic Europe's and Alto Partners' vision of building a comprehensive platform that addresses the intricate needs of global pharmaceutical clients. By merging Doppel Farmaceutici and Mipharm, the newly formed Domixtar Pharmaceuticals leverages the unique strengths and technologies of each entity, thereby enhancing its scale and service offerings.

The combination fosters synergies that are anticipated to streamline operations, elevate product development capabilities, and improve innovation. As the pharmaceutical market continues to evolve, having a robust, integrated CDMO like Domixtar Pharmaceuticals allows for a more competitive position on both national and international fronts.

Information about the Investor

Trilantic Europe is a premier mid-market private equity firm focused on management buyouts, buy-ins, and partnerships. With a history of investing over €2.7 billion in 30 portfolio companies since 2004, Trilantic Europe is recognized for its strategic approach to creating value within its investments. The firm is managed by an experienced group of investment professionals dedicated to nurturing portfolio companies into strong, global players.

Alto Partners is an independent management company specializing in private equity investments within the Italian mid-market. Having completed around 50 transactions over approximately 25 years, Alto Partners collaborates closely with entrepreneurial families and managers to support growth initiatives and navigate complex transitions. Their commitment to empowering businesses is demonstrated by their significant investments in various sectors, including manufacturing and healthcare.

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The merger resulting in Domixtar Pharmaceuticals represents a promising investment opportunity within the dynamic CDMO market. The strategic consolidation allows for enhanced operational efficiency and technological advancement, driving value for both Trilantic Europe and Alto Partners. The new entity's ability to service a vast array of pharmaceutical companies furthers its potential for growth and market presence.

Moreover, the alignment of both firms' strengths - such as Doppel Farmaceutici's established client portfolio and Mipharm's innovative capabilities - creates a powerful synergy poised to attract further business opportunities. Given the rising demand for outsourced manufacturing and development services, Domixtar Pharmaceuticals is strategically positioned to capitalize on these market trends.

Key considerations in assessing the investment's potential include the CDMO sector's resilience and the ongoing need for specialized pharmaceutical services. As the complexities of drug development continue to evolve, the demand for experienced CDMOs like Domixtar Pharmaceuticals will only intensify, making this merger a sound strategic move with substantial upside potential.

Ultimately, this deal not only enhances the competitive edge of Domixtar Pharmaceuticals but also signifies a well-calculated investment strategy for both Trilantic Europe and Alto Partners in an ever-expanding pharmaceutical landscape.

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