H.I.G. Capital, a global private equity firm, is considering the sale of Rising Pharmaceuticals, a generic drug manufacturer it owns. The potential sale could value Rising Pharmaceuticals at more than $1 billion. This move comes as H.I.G. Capital has held the company for approximately seven years, a period that aligns with the extended holding times observed in the private equity industry before firms seek an exit for their portfolio companies.
H.I.G. Capital acquired Rising Pharmaceuticals in 2019 out of its former parent company's bankruptcy. The initial acquisition, made through an affiliate and in partnership with Rising's CEO Vimal Kavuru, involved a payment of $15 million for the assets. Since the acquisition, H.I.G. has provided strategic direction and funding to support Rising's operations, including maintaining its supply chain, pursuing new drug filings with the FDA, and investing in its distribution network. Rising Pharmaceuticals currently boasts a portfolio of over 250 products across various therapeutic categories.
Rising Pharmaceuticals, under H.I.G.'s ownership, has seen significant growth. The company focuses on developing and marketing generic and specialty pharmaceutical products using an asset-light model with an outsourced third-party network. The potential sale indicates H.I.G.'s strategy to capitalize on this growth and its successful turnaround of the company following its previous owner's bankruptcy. H.I.G. Capital has also been active in the pharma services sector, with other investments including Aspire Pharma, BioVectra, Leiters, and Taconic BioSciences.
