Marathon Asset Management has purchased Kaléo, a privately held pharmaceutical company. The purchase price is estimated to be $310 million in cash with potential revenue milestone payments of up to $70 million.
The new ownership will accelerate Kaléo’s growth in serving its patients at risk for anaphylaxis and other serious conditions. The firm is a provider of human factors engineering and drug-device combination product development. Kaléo has developed its patented Aerio Auto-Injection platform which can deliver a range of formulation volumes to meet the growing needs of the pharmaceutical industry.
“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.”
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.