1. Company Terapia
HQ Romania
Sector Healthcare
Industry sector Life sciences
Investor Advent International
For more info
www.terapia.ro
www.adventinternational.com
European Private Equity
& Venture Capital Association
Bastion Tower,
Place du Champ de Mars 5, B-1050
Brussels, Belgium
Tel +32 2 715 00 20
www.evca.eu
CREATINGLASTINGVALUE
PRIVATEEQUITYINACTION
WhenAdventacquiredTerapiain2003,theRomanian
pharmaceuticalsmarketshowedconsiderablehigh-growth
potential.Ahouseholdnamewithan80-yearheritage,state-owned
Terapiawasthesecond-largestpharmaceuticalsmanufacturerin
Romaniabutneededtorevampitsproductportfolioandadopta
strongercommercialfocus.
Advent’sinvestmentinthecompanyprovidedthecatalystfor
thecompany’sgrowththroughaprogrammeofoperational
andmanagementchange.Bythetimeofexit,thecompanyhad
substantiallygrownandgainedinternationalstature.
Terapia
Privateequityhelped
transformthisRomanian
pharmaceutical
manufactureintoa
globalstandardbusiness
The business need
- Revitalisation and development of Terapia’s product portfolio
- Sales increase and geographical expansion
- Creation of an effective commercial department
Actions to create lasting value
- Supported and strengthened the management team
- Product development: 23 new products launches, acquisition of two smaller generics
manufacturers
- Boosting sales activity: five-fold increase in the sales team
- Significant investment in R&D
- Adoption of international operational and cleantech standards, first-of-their-kind
in Romania (Decommissioning and decontamination of environmentally damaging
chemicals manufacturing facilities)
Outcomes
- Improved competitiveness
- Strategically significant regional expansion into Russia and Ukraine
- By the time of exit in 2006, sales had grown to $75m from $33.2m and EBITDA
(earnings before deductions like tax) to $26m from $11m in 2002
23
product
launches
The partnership between
management and Advent in
defining and implementing the
Terapia vision was key to the
success of the transaction, and
access to Advent’s supporting
network played a significant part
in achieving the final result
STEPHEN STEAD, FORMER TERAPIA CEO
AND ADVENT OPERATING PARTNER