PE firms in fray for critical care biopharma firm Ikaria

Private equity firms BC Partners Ltd, Onex Corp and American Securities have entered the second round of bidding for Ikaria Inc, a VC-bcked critical-care biopharmaceutical company, that may fetch its owners up to $2 billion, Reuters yesterday reported, citing sources.

The three private equity firms are among those through to the second round of bidding for Ikaria, with final offers currently due by early December, the report said.

Ikaria, whose owners include New Mountain Capital, Arch Venture Partners, Venrock Associates, Linde Group and Black Point Group, had in October hired Morgan Stanley and Credit Suisse to explore a sale. (See: US biopharmaceutical company Ikaria Inc explores sale)

Ikaria was created in 2007 through the $670-million merger between Ikaria Holdings Inc and German industrial gas producer Linde AG's INO Therapeutics, with Ikaria as a minority owner in the merged $160-million entity.

The New Jersey-based Ikaria is a critical care company focused on developing and commercialising innovative therapies for critically ill patients, with a 12-month revenue at the end of March 2013 at $361 million.

Its flagship product is `Inomax', a nitric oxide for inhalation used to treat hypoxic respiratory failure associated with pulmonary hypertension in infants.

It is also investigating additional indications for `Inomax' in bronchopulmonary dysplasia, and for inhaled nitric oxide with the `INOpulse DS' drug-delivery system as a drug-device combination product in pulmonary arterial hypertension and chronic obstructive pulmonary disease.

The company's late-stage pipeline comprises `Lucassin', a potential treatment for Hepatorenal Syndrome Type 1; and `Bioabsorbable Cardiac Matrix', a potential treatment for preventing cardiac remodelling and subsequent congestive heart failure following acute myocardial infarction, for which its patents will expire in 2029. Patents on some other products will run  till 2031.

Ikaria markets its products in Puerto Rico, Canada, Australia, Mexico, and Japan.

It has a research facility in Wisconsin, and manufacturing facilities in Los Angeles and Wisconsin.