Sabex

Boucherville, Québec
www.sabex.ca

When RoundTable first partnered with Sabex, a leading developer, manufacturer and distributor of generic small volume injectables, ophthalmics, suppositories, and other pharmaceutical products, in 2002, the company had not yet expanded beyond Canada. Sabex had a track record of growth, but each expansion required the reinvestment of owner/founder Michel Saucier’s personal resources. Michel recognized that entering the U.S. market was Sabex’s most compelling growth opportunity; however, previous attempts had been unsuccessful. Furthermore, as Michel planned for his retirement, he struggled with identifying a successor.

Results achieved with RoundTable’s value-added expertise:

• More than an 8x increase in equity value
  RoundTable originally acquired an 80% stake in Sabex, while Michel retained the other 20%. In August 2004, RoundTable sold Sabex to Sandoz, the global generics business of Novartis AG, for $565 million, resulting in an 8.2x increase in equity value. As a result of Sabex’s growth and partnership with RoundTable, Michel's remaining minority rollover stake in Sabex at the time of the sale to Sandoz was worth as much as the majority stake he originally sold to RoundTable.
  Sabex’s management team now leads Sandoz’s global generic injectables business. 
   
• Identification and recruitment of complementary management talent
  RoundTable worked with Michel to identify and hire a new president/COO/CEO successor, as well as attracting a veteran pharmaceutical executive to join the company as president of Sabex-US and head Sabex’s U.S. expansion efforts. 
   
• Significant capacity expansion
  Over a two-year period, capital expenditures were invested in Sabex at a rate of over six times its historical average, allowing the company to double its number of FDA-approved sterile suites and capacity. 
   
• Initiation of U.S. growth strategy
  RoundTable worked with Sabex management to renegotiate a key distribution relationship, accelerate internal product filings and introductions, establish new distribution partners, complete multiple product acquisitions, and expand Sabex into U.S. and other international markets. 
   
• Access to strategic partners
  RoundTable sponsored a CEO dialogue across the global generic industry and served as transaction coordinator for the sale.