Close Brothers Private Equity today announced it has backed the £22m management buy-out of IDIS, a market leading importer and distributor of unlicensed pharmaceuticals, on a named patient basis, into the UK and continental European markets.

CBPE is backing the management team led by managing director Natalie Douglas and supplemented by Nick Butcher, previously COO for DHL Europe, Middle East and Africa, as chairman and Robert Doe as finance director.

The buy-out will facilitate the exit of the founding shareholders of IDIS, and position the business for future growth.

IDIS’s core activity is the sourcing and distribution (with appropriate regulatory approval) of drugs which are currently unlicensed within a domestic territory from an overseas territory where they are licensed. IDIS, in partnership with pharmaceutical companies, provides these services to hospitals and retail based pharmacists acting at the request of the prescribing hospital physician.

IDIS has a database of more than 17,000 drugs. In several circumstances it has agreements with large pharmaceutical companies and established biotech firms, to supply and distribute their drugs on an exclusive basis.

In the UK, the unlicensed drugs market has shown strong historical growth levels with the number of notifications (approvals for unlicensed drug importation) issued by the MHRA (Medicine and Healthcare Products and Regulation Agency) more than doubling between 2002 and 2004.

In the year to November 2004, IDIS reported turnover of £41.4 million and earnings before interest, tax and amortisation of £3.6 million.

The UK is the company’s largest sales market, accounting for about 68 per cent of turnover. IDIS has also established growing operations in France and Germany.

Commenting on the investment, Sean Dinnen, CBPE partner said:

“IDIS is the UK market leader in the ‘named patient’ market and has established positions in the French and German markets. The company has demonstrated strong historical growth within the UK and is a cash generative and high margin business with an excellent and proven management team.

“There are good growth prospects in the unlicensed drugs market in the UK and continental Europe, in particular, resulting from an increase in pharmaceutical companies outsourcing their importation and distribution of specific drugs; the launch of new products – especially from the US – for importation; and increased awareness of new drugs by patients, hospital physicians and pharmacists.

”We are confident in IDIS’ growth prospects, particularly given its regulatory knowledge, its long-standing customer and supplier relationships and its pan-European presence.”

Natalie Douglas, IDIS managing director, added:

“The IDIS management team is delighted to have the solid backing of Close Brothers Private Equity. We have clear ambitions to grow the business substantially, both in the UK market and in continental Europe.”

For more information contact:

Close Brothers Private Equity
Sean Dinnen/John Fisher
Tel: + 44 207 065 1100

This Press release has been issued by Close Brothers Private Equity LLP.