Private equity-backed Ikaria up for sale for over USD2 billion - sources

October 4
9:12 AM 2013

According to sources who were familiar with the matter, Ikaria Inc had been working with banks to facilitate the sale of the company. The drug firm hoped that should the sale happen, it would fetch the company over USD2 billion in valuation. Two of the sources said Ikaria had already been talking with Credit Suisse Group AG and Morgan Stanley regarding the possible sale.

Ikaria is owned by private equity firms that included ARCH Venture Partners LP, New Mountain Capital LLC and Venrock Associates LP. The drug firm's main product is INOMAX. INOMAX had been helping newborns with breathing difficulties. The company also has a pipeline of critical care products designed to help patients who have injuries or diseases that are life-threatening.

Ikaria is poised to face tough competition soon as some of its patents would be expiring starting this year. The drug firm had filed for a public listing back in 2010 but withdrew its registration due to the conditions of the market at that time. Ikaria's owners also took several company dividends, most notably its USD475 million distribution via borrowing last summer. 

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