3i has more than 15 years’ experience of investing in pharma companies.  At 31 March 2006, we had a portfolio of 47 companies with a market value of over €200m.  We have a strong track record of supporting pharma businesses at all funding stages in the US and Europe, and are seeing an increasing number of opportunities to work with well-established generics manufacturers in Asia.

Many of the pharma companies we’ve partnered began with a strong position in their local market and are now riding global trends to deliver significant financial success:

• Capitalising on the increasing demand for generic drugs.  Germany is Europe’s leading market for generics, and betapharm rapidly grew into one of its largest players, thanks to a first-class distribution network and a unique set of relationships with Germany’s medical community.  In February 2006, we sold betapharm to Dr. Reddy’s, an Indian pharma company which will use its low-cost manufacturing capabilities to underpin betapharm’s competitive position.
• Thriving in the strong market for animal health products.  French veterinary pharma company Vétoquinol produces medicines for agricultural livestock and domestic pets.  In Europe, this market has seen increasing regulation, creating an advantage for highly-effective operators who can work effectively within rigorous frameworks.  Since we began working with Vétoquinol, we’ve used our industry contacts to help it establish a distribution deal in Spain.
• Winning awards for innovation in the biotech sector.  Domantis has unique expertise in the field of human domain antibodies.  When we invested in 2004, it was a further evolution of our already-strong relationship with the company’s founder.  Since then we’ve introduced Domantis to our contacts in the pharma world and helped the company source further talent for its board.