Minority Stake: Pharmaceutical Company in an Attractive Niche
Company Description
An established pharmaceutical company is opening up to new investors after existing minority shareholders expressed a desire to sell their shares. The company, which has been in business for over 40 years, is the European market leader in a specialized niche market with a near-monopoly position and wields impressive pricing power across large portions of its extensive product portfolio. The company develops, manufactures, and distributes approximately 700 high-quality products under GMP certifications from Swissmedic and the FDA (U.S.). In addition, the company offers services in the areas of documentation and contract manufacturing.
A key USP lies in its unique international supplier network and first-class regulatory documentation, which is highly regarded worldwide. With a workforce of about 40 employees in Switzerland and another 10 abroad, the company exports its products to more than 50 countries. The domestic market, accounting for about 50% of sales, also contributes substantially to the company’s success.
Thanks to strategic investments and measures already implemented, the company is on a growth trajectory and plans to double its revenue within the next five years—with a target EBITDA margin of at least 20%.
The company plans to distribute 40% of net income before taxes as dividends in the future, increasing this to 50% later on. Initially, the return on invested capital is approximately 4% and is expected to rise to about 8% over the next five years in line with anticipated growth. A total of approximately 200 shares can be purchased at a price of CHF 6,000 each, which corresponds to about 16% of the share capital. Partial lots of 20 shares or more are also available for sale.
This investment provides access to a profitable, established, and internationally active pharmaceutical company with a stable market position and attractive long-term return potential.
Industry sector
Health / Medicine / Care