Pamplona Capital Management fund that’s managing money of Russian Alfa-Bank shareholders bought “Parexel” the US service provider in the field of pharmaceuticals. The amount of the transaction came to $5 billion, including debt. It is expected that the transaction will be closed in the IV quarter of 2017 when Pamplona will complete the aquisition all issued shares of Parexel International Corp., paying $88,1 per share which includes 23.3% premium on the top of maximum price over the year. After the transaction Parexel will conduct delisting, said Pamplona’s spokesman.
Parexel provides pharmaceutical companies with research. The company has 86 offices in 51 countries and about 19 600 employees. 2016 revenue was $2,094 billion (+3,9%), net profit of $155 million (+4,8%) (the reporting period ended on June 30, 2016). 57% of Parexel revenue comes from its foreign operations where Russian subsidiary is one of the largest contract research organizations. “At Parexel we have 13 permits for conducting international multicenter clinical trials (IMCT) which are held in several countries and the company holds the fourth place among contract organizations”, as per statement of the Association of Clinical Research Organizations (ACRO). According to ACRO, in just 2016, the Ministry of Health of Russia issued 302 permits for conducting IMCTs.
Shareholders generally do not influence the country selection for studies, says the ACRO Executive Director Svetlana Zavidova. According to her, it is defined by a sponsor pharmaceutical company whose drug is being researched, and the contract organization can advise the country on the basis of sponsor interests. Parexel has partnered with all major pharmaceutical companies, including Pfizer, GSK, AstraZeneca.
Pamplona Capital Management was founded in 2005 by a former top manager and co-owner of Alfa-Bank Alex Knaster. The first fund of the company was fully formed at the expense of the shareholders of “Alfa group” of Mikhail Friedman, Herman Khan and Alexey Kuzmichev. The Fund manages assets of more than $10 billion in financial technology, IT services, Internet media, and health.