RoundTable Healthcare Partners has successfully realized its first Fund II investment by selling Bioniche Pharma to Mylan (NYSE: MYL) for $550 million in cash, yielding a return of more than 9x invested capital. The company manufactures generic injectable pharmaceuticals and first received an investment from RoundTable in February 2006. Bioniche-backer ICC Private Equity Fund sold its minority stake to Mylan as well.
Since the beginning of 2009, PE investors have realized 58 Healthcare investments, according to the PitchBook Platform. Healthcare exit activity is up this year with 28 exits already completed, just two less than the total count for all of last year. Corporate acquisitions continue to be the most popular exit method, accounting for 60% of the activity in 2009 and 65% in 2010 YTD. PE investors, though, have shown a shift in exit preferences between IPOs and secondary sales as sellers continue to face a harsh IPO environment and buyers increasingly look to put the dry powder they've amassed to use. IPOs dropped from 23.3% of exits in 2009 to only 6.9% so far in 2010, while secondary sales have almost doubled from 13.3% to 24.1%.