FIMI Opportunity Funds (FIMI) is in talks to buy Israeli pharmaceutical company Rafa Laboratories Ltd. from the Sackler family, which holds a 73% stake, at a company valuation of NIS 700 million.
The Sackler family is probably selling its stake because of the fallout from the opioid scandal in the US. The Sackler family owns Purdue Pharma, which filed for Chapter 11 bankruptcy protection last year, after developing and selling OxyContin, the branded opioid painkiller at the heart of the opioid affair in the US. The Sacklers may be required to pay $3 billion in compensation for their role in the affair.
Rafa, which was founded in 1937 by Dr. Baruch Levin, manufacturers generic pharmaceuticals for marketing in Israel. The Sackler family bought Rafa in 1973 and today the company's annual revenue is estimated at NIS 500 million with profitability of 20%-25%, which is typical for pharmaceutical companies. The company has hundreds of employees and a factory in Jerusalem, which began operating in 2013. Rafa's CEO is Amir Levin, grandson of the founder.
This would be one of FIMI's largest acquisitions in recent years and another step in expanding its healthcare portfolio. FIMI's major holdings in this field include drug developer Kamada Ltd. (TASE: KMDA), Rekah Pharmaceuticals, medical device company Simplivia and medical services and logistics company Novolog.
Published by Globes, Israel business news - en.globes.co.il - on October 8, 2020
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