Grünenthal boosts US growth with $250M Valinor Pharma acquisition

Grünenthal, a German pharmaceutical company, has announced its acquisition of Chicago-based Valinor Pharma for $250 million. This move significantly strengthens Grünenthal's presence in the United States, which CEO Gabriel Baertschi identifies as the firm's "most important growth market."

By acquiring Valinor Pharma, Grünenthal adds Movantik (naloxegol) to its portfolio. Movantik is a treatment for opioid-induced constipation (OIC) and has shown substantial commercial success. In 2023, Movantik generated over $200 million in gross sales in the U.S. Known outside the U.S. as Moventig, the drug's European rights were gained by Grünenthal in November 2022, following a joint venture with Tokyo-based Kyowa Kirin. With this acquisition, Grünenthal now holds global rights to Movantik, except in Canada.

Movantik has an interesting history. Originally, AstraZeneca secured FDA approval for the drug in 2014. Later, AstraZeneca sold its U.S. rights to North Carolina-based RedHill Pharma in 2020. RedHill extended Movantik's U.S. exclusivity until 2030 by settling with generic drugmakers Aurobindo, Apotex, and MSN Pharmaceuticals. In a deal last year, RedHill transferred the U.S. rights for Movantik to HealthCare Royalty (HCRx) to clear its debt. Subsequently, Valinor Pharma became a marketing partner for Movantik under an agreement slated for 2024.

Grünenthal has been on a significant expansion spree since 2017, investing over 2 billion euros ($2.2 billion) in mergers and acquisitions. The company operates in around 100 countries and employs 4,400 people. It reported revenues of 1.8 billion euros ($2 billion) last year, marking a 10% increase from the previous year.

The acquisition of Valinor Pharma is part of a broader expansion strategy by Grünenthal. In 2022, the company acquired Bayer’s hypogonadism drug Nebido for 500 million euros ($500 million). Prior to that, Grünenthal had acquired the dermal pain patch Qutenza from Acorda Therapeutics, as well as rights in certain regions to several AstraZeneca drugs, including Vimovo (arthritis), Crestor (cholesterol), Zomig (migraine), and Nexium (heartburn).

Moreover, Grünenthal is investing heavily in its manufacturing capabilities. Last week, the company announced an investment exceeding 80 million euros ($87 million) to upgrade its manufacturing facilities in Chile and Ecuador. This marks the company's largest manufacturing investment in over three decades.

In summary, Grünenthal's $250 million acquisition of Valinor Pharma is a strategic move to enhance its footprint in the U.S. market, driven by the commercial success of Movantik. The acquisition is part of Grünenthal's broader strategy to expand its global presence, backed by substantial investment in mergers, acquisitions, and manufacturing capabilities.