Insud Pharma to sell stake in biotech unit mAbxience - sources

FRANKFURT (Reuters) - Spain’s Insud Pharma plans to sell a stake in its biopharmaceuticals unit mAbxience in a deal that is expected to value the maker of monoclonal antibodies at about 1 billion euros ($1.18 billion), people close to the matter said.

The company is working with Goldman Sachs and plans to use the proceeds from the sale of the stake for expansion of mAbxience, they said, and bidders have been asked to submit offers by the end of July.

Private equity firms, including BC Partners, CD&R, EQT, General Atlantic, Nordic Capital, PAI and Permira are expected to take part in the auction, the sources said.

Insud Pharma, Goldman Sachs and the prospective bidders declined to comment or were not immediately available for comment.

Insud Pharma could see mAbxience valued at 750 million to 1 billion euros, one of the sources said, while another said the valuation could top 1 billion.

mAbxience specialises in the development, manufacture and commercialization of monoclonal antibodies used in the treatment of cancer, and has three facilities in Spain and Argentina.

Insud Pharma, formerly known as Chemo Group, comprises the units Chemo, which makes active pharmaceutical ingredients and generics; Exeltis, which has branded products for women’s health, respiratory, dermatologic and endocrinologic diseases; and mAbxience.

mAbxience has agreed to produce AstraZeneca’s COVID-19 vaccine in Argentina for the Latin American market.

($1 = 0.8481 euros)

Additional reporting by Jesus Aguado; Editing by Bernadette Baum