Marathon Asset Management has signed a definitive agreement for the acquisition of Kaléo, a privately held pharmaceutical company based in Richmond, Virginia, by funds managed by Marathon.
The transaction will provide liquidity for Kaléo shareholders upon closing. This new ownership structure will accelerate Kaléo’s growth serving patients at risk for anaphylaxis and other serious and life-threatening conditions.
“The sales trajectory of Kaléo has been impressive, and we view the company as a platform for growth,” said Dr. Evan Bedil, Head of Healthcare at Marathon. “We plan to leverage the company’s strong portfolio of intellectual property, its leading reputation among allergists and its experienced management team, to pursue multiple avenues of growth in the coming years.”
An industry leader in human factors engineering and drug-device combination product development and manufacturing, Kaléo has developed the patented Aerio® Auto-Injection Platform which can deliver a wide range of formulation volumes and viscosities to meet the growing unmet needs of the pharmaceutical industry.
“Kaléo’s executive management team enthusiastically looks forward to joining forces with Marathon, which has been a strong ally of Kaléo as a lender for many years,” said Ronald Gunn, President and CEO of Kaléo. “With its vast resources and well-established capital base, we have found the strongest possible partner to help us commercialize our significant intellectual property and write the next chapter in Kaléo’s story.”
Kaléo is best known for the development and commercialization of the AUVI-Q® (epinephrine injection, USP) 0.15 mg and 0.3 mg, as well as AUVI-q® (epinephrine injection, USP) 0.1 mg, the first and only FDA approved epinephrine auto-injector designed for infants and toddlers weighing from 16.5 to 33 pounds.
“The acquisition of Kaléo represents a strategic investment for our healthcare franchise,” said Randy Raisman, Managing Director in Marathon Asset Management’s Capital Solutions Group. “We believe that Kaléo has solid growth prospects driven by co-development opportunities, expected market share gains through expanded market access, and growth in awareness among patients.”
The Kaléo Board of Directors unanimously approved the transaction and approval by the requisite shareholders has been obtained. Subject to regulatory clearances, closing is expected to take place on or prior to December 31, 2021.
Marathon received legal advice for the transaction from Covington & Burling LLP and Leason Ellis LLP. Morgan Stanley & Co. LLC acted as financial advisor and Hunton Andrews Kurth LLP acted as legal counsel to Kaléo.
Kaléo will remain headquartered in Richmond, Virginia.
