Goldman Sachs’ investment arm agrees €2bn deal for drugmaker Synthon

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Deal with BC Partners aims to capitalise on rising demand for off-patent versions of complex drugs

Goldman Sachs Asset Management has agreed a more than €2bn deal to acquire drugmaker Synthon from BC Partners, according to people familiar with the matter, as it hopes to capitalise on demand for off-patent versions of complex medicines. Private equity group BC Partners, which acquired a majority stake in the business in 2019 at an enterprise value of €750mn, will retain a roughly 25 per cent stake in the group after the Goldman Sachs deal, one of the people said.

Overstretched healthcare systems are interested in cutting drug bills by replacing branded medicines as soon as the intellectual property protections expire. The company is investing in R&D and setting up four manufacturing sites as it expects the number of pills coming off patent to double in the next 10 to 15 years, according to one person familiar with the matter. The sale of Synthon by BC Partners takes the investment group’s exited positions to about €13bn in the past 18 months.

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