Stanley Capital-Backed LXO Acquires Nimotop From Bayer

Stanley Capital Partners announces its portfolio company, Laboratoire X.O, has completed the acquisition of the prescription drug Nimodipine under the brand name Nimotop from Bayer for several markets globally excluding mainland China.

Nimodipine is the only approved 2nd generation dihydropyridine calcium channel blocker that is available in three different formulations (oral tablets, oral solutions and intravenous infusion solutions) in several markets globally. It is used for the prevention and treatment of cerebral vasospasm, following an aneurysmal subarachnoid hemorrhage (“aSAH”), a type of stroke with high mortality and morbidity rates.

The global cerebral vasospasm market is expected to grow at a CAGR of +6.5% (*2022A – 2027E), mainly driven by aging populations (at higher risk of experiencing aSAH and vasospasm), higher incidence of aSAH (with an increasing number of reported aSAH cases worldwide, the potential patient pool for vasospasm treatment is subsequently expanding) and general lifestyle behaviours.

This acquisition builds on Stanley Capital’s investment strategy of consolidating and integrating established medicines with high barriers to entry from big pharma companies. The overall aim is to create a high therapeutic value platform within a space where the firm has actively been investing since 2020.

Nimotop further strengthens LXO’s market presence in Europe and significantly expands its global footprint. The product also adds to the company’s core therapeutic areas for the Central Nervous System and Cardiovascular. This move creates synergies and diversifies LXO’s global portfolio which will enable an uplift of its valuation multiple as a result.

This acquisition demonstrates LXO’s commitment to maintaining and developing access to essential products for patients’ health on a truly global basis. LXO’s management has identified Nimotop as a strong candidate to deploy its proven late lifecycle management skills and to help drive its organic growth trajectory. Today, it offers 28 brands powered by a distribution network in more than 80 countries. The LXO team have consistently demonstrated strong capabilities to integrate and revitalise mature brands from big pharma and to enable organic growth through its life cycle management strategy, regardless of historically declining products.

Patrick Hargutt, Founding Partner at Stanley Capital Partners, commented: “Stanley Capital is actively working with LXO management team to further strengthen and support the company through its next phase of growth and wider development. The acquisition of Nimotop follows a highly impressive M&A track record with now 20 add on acquisitions completed to date and a clear strategy to pursue further bolt-ons from 2 | Page our actively curated pipeline in established medicines. Management have identified a clear path to implement its systemised late lifecycle management playbook for Nimotop which includes enlarging its serviceable available market (“SAM”) through digital marketing, pursuing geographic expansion and also optimising market access.”

LXO collaborates with a vast network of contract manufacturing organisations (“CMOs”) across Europe and the US and has demonstrated both its ability to deliver product transfers and manage its CMO footprint well to date.

Karine Pinon, Co-Founder and CEO at LXO, concluded: “This acquisition is a major milestone in LXO’s history. We believe that it will provide a strong basis to further accelerate growth through both organic and external opportunities. We are very proud to take over the management of life-saving drugs such as Nimotop and are committed to maintaining and developing access to this treatment in more than 45 countries today. This acquisition strengthens our international footprint and offers exciting new opportunities for our future growth. We are thrilled with this development and determined to make the most of this opportunity for the patients, our employees and our shareholders."