Xanodyne Pharmaceuticals, Inc., a specialty pharmaceutical company focusing on innovative products in the therapeutic areas of women's health and pain management, today announced that the Bankruptcy Court for the District of Delaware has approved its bid to acquire the pharmaceutical assets of aaiPharma (PINK SHEET: AAIIQ). The deal terms included $209.25 million cash and additional non-cash consideration. 

Xanodyne, a private company financed by an equity syndicate led by MPM Capital, and co-led by Apax Partners, headquartered in Greater Cincinnati, is dedicated to providing patient care in women’s health and pain management. Other new investors included Perseus-Soros BioPharmaceutical Fund and affiliates of AIG Global Investment Group, while Silver Point Finance provided Xanodyne a term debt and revolver facility. The new investors were also joined in the financing by existing investors, Healthcare Ventures, Essex Woodlands, Blue Chip Venture Company and Coleman Swenson Hoffman Booth.

INFO SOURCES

FIRMS

Xanodyne Pharmaceuticals, Inc. is a privately owned, fully integrated, branded specialty pharmaceutical company focusing on innovative products in the therapeutic areas of women's health and pain management. The company, located in the greater Cincinnati area, has a nationwide sales force and currently markets numerous pharmaceutical products.

MPM Capital L.P. is a global investment management firm focused solely on life sciences investing. One of the largest investment management firms dedicated to the life sciences sector, MPM Capital has offices in Boston and San Francisco. MPM’s portfolio ranges from start-ups to large capitalization public companies, with a primary focus on biopharmaceutical and medical device companies nearing commercialization of products or those companies that already offer product-driven opportunities. The firm manages over $2.1 billion in assets through the MPM BioVentures Family of venture capital funds and the MPM BioEquities public market funds.

Apax Partners is one of the world's leading private equity investment groups, operating across the United States, Europe and Israel. Apax Partners has raised or advised approximately $20 billion around the world. With more than 30 years of direct investing experience, Apax Partners' Funds provide long-term equity financing to build and strengthen world-class companies. It pursues a multi-stage equity investment strategy, investing in late venture, growth capital and buyouts. Apax Partners' Funds invest in companies across its 6 chosen global sectors of telecommunications, IT, retail and consumer, media, healthcare and financial/business services.

LINKED TO

Xanodyne, a private company financed by an equity syndicate led by MPM Capital, and co-led by Apax Partners. Perseus-Soros BioPharmaceutical Fund and affiliates of AIG Global Investment Group, while Silver Point Finance provided Xanodyne a term debt and revolver facility. The new investors were also joined in the financing by existing investors, Healthcare Ventures, Essex Woodlands, Blue Chip Venture Company and Coleman Swenson Hoffman Booth.

ADVISORS

Xanodyne was advised by Bear, Stearns & Co., Inc. and Dinsmore & Shohl LLP; the equity sponsors were advised by Lazard and Weil, Gotshal & Manges (bankruptcy counsel) and Palmer & Dodge (corporate counsel).

BOARD/MANAGEMENT

A new Board of Directors has been established to guide the organization. James Cavanaugh, Ph.D. (Healthcare Ventures), James Currie (Essex Woodlands), and William Nuerge (Xanodyne CEO) remain on the Board and will be joined by Ansbert Gadicke, M.D. (MPM), Steven St. Peter, M.D. (MPM), Adele Oliva (Apax Partners) and Dennis Purcell (Perseus-Soros). Cavanaugh continues as chairman of the board.