Following a strategic review, Glenmark Pharmaceuticals sought to exit its CNS business in Poland. The unit consisted of 20 branded generics, generics and food supplement products supported by a national sales manager, four area sales managers and 32 medical representatives. To maintain revenue growth and avoid morale issues among its employees in Poland, Glenmark’s European management developed strict confidentiality protocols. There could be no direct contacts with the local Polish organization.
Glenmark retained Plexus Ventures to conduct a highly secretive process, limiting initial contacts to 10 potential buyers whom Plexus believed would have the greatest rationale for acquiring the product portfolio and sales team.
Plexus determined the most likely buyers would be those seeking to establish an initial presence in the Polish market or those desiring to expand into a new therapeutic area (CNS).
• 80% of the companies Plexus targeted signed CDAs;
• 50% of CDA signers submitted NBOs; and
• 50% of firms submitting offers were invited to conduct due diligence.
Neuraxpharm acquired the CNS portfolio and sales team to dramatically increase its nascent presence in Poland. The acquisition increased Neruaxpharm’s revenues in Poland by more than 150% and provided them with a credible organization on which to further build. All of Glenmark’s CNS employees were taken onboard by the buyer.