Danish pharmaceutical company Lundbeck A/S has agreed to acquire Ovation Pharmaceuticals for up to $900 million. The deal includes a $600 million payment upon closing and a $300 payment within a year of closing on condition of regulatory approval for Ovation's new drug, Sabril. GTCR Golder Rauner invested $150 million to launch the company in 2002. Ovation focuses on the investigation and acquisition of approved drugs for focused patient populations.
First the IPO market shut down, and now the strategic acquirer exit strategy seems to be shutting down as well. Ovation is only the second announced sale of a private equity-backed company to a strategic acquirer since the beginning of the year. Secondary transactions have dwindled as well, with only one secondary deal, a sale to another private equity firm, having been completed so far in 2009.