(Bloomberg) -- Italian drugmaker Angelini Pharma SpA is looking at three US biotechs for a potential merger that would expand its global footprint and help it execute an ambitious growth plan.
Sergio Marullo di Condojanni, the chief executive officer of the drugmaker’s Rome-based holding company, Angelini Holding SpA, said in an interview that the ideal partner would have a pipeline of products in late clinical trials, and have released at least one drug to treat epilepsy, depression or schizophrenia. He declined to name any of the prospective counterparties.
“We’re currently reviewing a shortlist of about three biotech firms which are all focused on central nervous system diseases,” Marullo di Condojanni said.
Angelini recently hit an all-time high of €2.1 billion ($2.3 billion) in revenue, with its largest business, Angelini Pharma, reporting €1.2 billion in sales last year, according to a statement seen by Bloomberg.
While Marullo said Angelini is particularly interested in expanding into the US, where it does not currently have a presence, Bloomberg News reported last month that the company has also expressed interest in Milan-listed Italian drugmaker Recordati SpA. That came after buyout firm CVC Capital Partners Plc kicked off discussions about selling its controlling stake, according to people familiar with the matter.
A deal with Recordati would be a transformational move for Angelini, creating an Italian pharma powerhouse that could generate overall sales of about €3.3 billion and would employ about 7,500 workers, according to the companies’ latest annual reports. Angelini has yet to submit a formal proposal for Recordati, the people said. A spokesperson for CVC declined to comment.
Angelini group’s sales rose year-over-year about 8% in 2023 to €2.1 billion, according to the statement, which Marullo di Condojanni characterized as the company’s best-ever financial performance. Over that same period, earnings before interest, taxes, depreciation and amortization climbed 19% to €304 million.
In 2021, Angelini agreed to buy Swiss-based Arvelle Therapeutics, which makes seizure drugs, in an all-cash deal worth as much as $960 million. Thanks to investments totaling around €800 million, Marullo di Condojanni said that the company’s revenue has risen more than 25% over the past four years.
The drugmaker, which was founded in the central Italian town of Ancona in 1919 by pharmacist Francesco Angelini, is known for making popular over-the-counter medications for pain relief. It currently operates 12 plants, half of which are in Italy.
--With assistance from Albertina Torsoli and Swetha Gopinath.
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