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Investment opportunity
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Generic Pharmaceuticals Investment
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The group is an emerging company in the rapidly expanding generic pharmaceutical market. Based in the Stanmore region outside of London, Target has identified a large number of branded drug products approaching patent expiry in the time periods of 2012 to 2016. This includes over 11M product prescriptions in 2012 alone. The UK generic drug market is currently valued at £3.5 billion and expected to grow to over £5.1 billion by 2016.
The Company is led by a very experienced and accomplished management team in the generic drug industry. The CEO and COO have a combined 40 plus years of executive and scientific management in the industry.
Our CEO has in the past built a company with over 1200 people with operations in 28 countries. He has spent the past 7 years in the UK generic drug market, increasing turnover by a factor of 50X and producing net revenue of £32M in 2009. Our COO is a generic pharmaceutical industry executive specialist in regulatory, quality control, and manufacturing compliance on a global basis. In their work together over the past 8 years, they have successfully acquired over 150 licenses to market generic pharmaceutical products in the UK and other world markets.
The Company's business model and competitive advantages feature a cGMP manufacturing scalability with a cost of goods reduction already in place in India and deep marketing and distribution relationships in the UK, Eastern Europe, and Russia. The Company has an exclusive regulatory agreement with an EU based laboratory that specializes in preparing the requisite documentation for regulatory and marketing approval on a country by country basis in the generic pharmaceutical market. Management has a proven track record of acquiring marketing approval licenses in the UK and achieving solid results upon market entry and penetration.
By conservatively projecting a market share percentage of 10% in the UK generic market for their product targets, Target is poised to produce immediate revenue in late 2012, profitability in 2014, and projects UK only sales over £5M in 2016 with EBITDA exceeding £800K. Management believes that much more may be accomplished but is very conservative in their market estimates.
The Company has been self-funded by its founder management team to date in the development process. As they approach marketing approval for the initial product candidates in the third quarter of 2012, the Company is seeking an investment of £750K in minimum units of £25K. These funds will be used for the acquisition of product licenses, establishing UK operations, and marketing. The Company believes that additional funding will not be required to meet its UK projections but additional capital may be required for international expansion.
A generous return on investment will be provided to investors by an annual dividend and full liquidity is expected by a sale of the Company to a large industry participant. Currently, acquisition valuations in the generic pharmaceutical are between 5 and 10 times EBITDA. By 2016, the Company is anticipating a corporate valuation in excess of £5M for its UK business only. The Company's objectives includes acquisitions of generic pharmaceutical groups in Europe with revenue targets of £50 million and EBITDA of £8 million by 2017 and a valuation between £50 million and £80 million prior to a planned exit in the timeframe of 2017 to 2018. |
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| Total Funding Required: |
£750,000.00 |
| Min. per Investor: |
£25,000.00 |
| Industry: |
Drugs |
| Sec. Industry: |
Medical/Healthcare |
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| Region: |
Greater London |
| Proposal ID: |
3057 |
| Investment Reason: |
Buyout Financing |
| Proposal Status: |
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Angel Investors Raising Business Finance Small Business Grants Business Funding Venture Capital
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