Scottish pharma firm Kelso seals ‘milestone’ deal on European growth journey

The purchase of Alturix Holdings, based in Milton Keynes, has been described as “complementary”, with the two firms sharing a “common philosophy” of supplying branded specialty medicines that provide patient benefits and a reduced cost burden to the NHS. Financial details surrounding the acquisition have not been disclosed.

Kelso is headed by chief executive Tom Stratford, previously CEO of Kyowa Kirin International (KKI), the European and US business arm of Japan’s Kyowa Kirin, which purchased Borders-based ProStrakan Group in 2011.

He said: “Our aim has always been to build a specialty pharma business that puts patients first and, in Alturix, we have found a complementary business that shares our philosophy of improving the lives of patients in a cost-effective and ethical way.

“This is a milestone acquisition for Kelso Pharma, doubling the size of our UK business and building a pharma company of scale. The Kelso platform is now positioned for further international growth as we seek to expand the markets for Alturix’s products, as well as further enhancing Kelso Pharma’s position as a partner of choice for other pharma businesses and innovative products.”

Alturix has seven branded medicines in the UK market, driving double-digit top-line revenue growth. These are in the therapeutic areas of central nervous system, respiratory disease and endocrinology. A further two pipeline products in the portfolio are set to launch in the next 12 months.

The portfolio of branded medicines is said to be “highly complementary” to Kelso Pharma’s existing line-up whose products are marketed through its existing businesses, Stirling Anglian Pharmaceuticals, based in Scotland, and Velit Biopharma, located in Italy.

Alturix is based in the city of Milton Keynes, Buckinghamshire, and all staff are expected to remain with the business post-acquisition. The company’s co-founders will work with the Kelso team to “ensure a smooth transition” and maintain continuity of supply of medicines to patients.

Kelso Pharma is backed by Apposite Capital, the private equity firm that invests in high potential commercial stage healthcare companies across Europe, with 13 healthcare businesses in its current investment portfolio.

Apposite managing partner Sam Gray said: “We are pleased to support this next strategic move for Kelso Pharma as its experienced management team builds a specialty pharma business of scale.”

Simon Fisher, co-founder of Alturix, said: “My late father-in-law shaped the first foundation steps of this company some 27 years ago. Over time, coupled with an unrelenting desire for growth, it has grown each year and since his passing in 2014, the company has transformed and transitioned into what is Alturix today, the result being far from what I am sure John could have imagined possible.

“Fit was a critical aspect in deciding the future of the company and we are pleased to be handing Alturix over to Dr Tom Stratford and welcome his capable team at Kelso Pharma. Kelso Pharma is ideally structured, suitably resourced and culturally aligned to drive the company further on its exciting growth trajectory.”

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