November 29, 2021
Marathon Asset Management Announces Acquisition of Kaléo
Transaction will accelerate Kaléo’s growth in development, manufacture, and commercialization of life-transforming medical products
Richmond, Va. (Nov. 29, 2021) – Marathon Asset Management today announced the signing of a definitive agreement for the acquisition of Kaléo, a privately held pharmaceutical company based in Richmond, Virginia, by funds managed by Marathon. The transaction will provide liquidity for Kaléo shareholders upon closing. This new ownership structure will accelerate Kaléo’s growth serving patients at risk for anaphylaxis and other serious and life-threatening conditions.
“The sales trajectory of Kaléo has been impressive, and we view the company as a platform for growth,” said Dr. Evan Bedil, Head of Healthcare at Marathon. “We plan to leverage the company’s strong portfolio of intellectual property, its leading reputation among allergists and its experienced management team, to pursue multiple avenues of growth in the coming years.”
An industry leader in human factors engineering and drug-device combination product development and manufacturing, Kaléo has developed the patented Aerio® Auto-Injection Platform which can deliver a wide range of formulation volumes and viscosities to meet the growing unmet needs of the pharmaceutical industry.
“Kaléo’s executive management team enthusiastically looks forward to joining forces with Marathon, which has been a strong ally of Kaléo as a lender for many years,” said Ronald Gunn, President and CEO of Kaléo. “With its vast resources and well-established capital base, we have found the strongest possible partner to help us commercialize our significant intellectual property and write the next chapter in Kaléo’s story.”
Kaléo is best known for the development and commercialization of the AUVI-Q® (epinephrine injection, USP) 0.15 mg and 0.3 mg, as well as AUVI-q® (epinephrine injection, USP) 0.1 mg, the first and only FDA approved epinephrine auto-injector designed for infants and toddlers weighing from 16.5 to 33 pounds.
“The acquisition of Kaléo represents a strategic investment for our healthcare franchise” said Randy Raisman, Managing Director, in Marathon Asset Management’s Capital Solutions Group. “We believe that Kaléo has solid growth prospects driven by co-development opportunities, expected market share gains through expanded market access, and growth in awareness among patients.”
The Kaléo Board of Directors unanimously approved the transaction and approval by the requisite shareholders has been obtained. Subject to regulatory clearances, closing is expected to take place on or prior to December 31, 2021.
Marathon received legal advice for the transaction from Covington & Burling LLP and Leason Ellis LLP. Morgan Stanley & Co. LLC acted as financial advisor and Hunton Andrews Kurth LLP acted as legal counsel to Kaléo.
Kaléo will remain headquartered in Richmond, Virginia.
About Marathon Asset Management
Marathon Asset Management LP, with $23 billion of assets under management, was formed in 1998 by Bruce Richards (Chairman & Chief Executive Officer) and Louis Hanover (Chief Investment Officer). The firm seeks attractive absolute returns through investments in the global capital markets and the private credit markets whereby it is known for its ability to provide capital solutions to companies across industries. Marathon’s healthcare team is known for buying pharmaceutical royalties in addition to providing capital solutions. Marathon has significant experience investing in companies through multiple cycles. Marathon possesses a unique, broad-based skill set and proprietary platform to research, analyze and act upon complex capital structures and situations. For additional information, please visit www.marathonfund.com.
Kaléo is a fully integrated pharmaceutical company dedicated to inventing, manufacturing and commercializing life-transforming products that empower patients with certain serious and life-threatening medical conditions to live fuller, bolder lives. We believe patients and caregivers are the experts on how medical conditions impact their lives, and so we include them as an integral part of our development process and consider their needs foremost. Kaléo’s innovative auto-injection technologies are protected by an extensive intellectual property portfolio of more than 200 issued patents. Kaléo is headquartered in Richmond, Virginia in the United States. For more information, visit www.kaleo.com.
AUVI-Q® (epinephrine injection, USP) is a prescription medicine used to treat life-threatening allergic reactions, including anaphylaxis, in people who are at risk for or have a history of serious allergic reactions.
Important Safety Information
AUVI-Q is for immediate self (or caregiver) administration and does not take the place of emergency medical care. Seek immediate medical treatment after using AUVI-Q. Each AUVI-Q contains a single dose of epinephrine. AUVI-Q should only be injected into your outer thigh, through clothing if necessary. If you inject a young child or infant with AUVI-Q, hold their leg firmly in place before and during the injection to prevent injuries. Do not inject AUVI-Q into any other part of your body, such as into veins, buttocks, fingers, toes, hands, or feet. If this occurs, seek immediate medical treatment and make sure to inform the healthcare provider of the location of the accidental injection. Only a healthcare provider should give additional doses of epinephrine if more than two doses are necessary for a single allergic emergency.
Rarely, patients who use AUVI-Q may develop infections at the injection site within a few days of an injection. Some of these infections can be serious. Call your healthcare provider right away if you have any of the following symptoms at an injection site: redness that does not go away, swelling, tenderness, or the area feels warm to the touch.
If you have certain medical conditions, or take certain medicines, your condition may get worse or you may have more or longer lasting side effects when you use AUVI-Q. Be sure to tell your healthcare provider about all the medicines you take, especially medicines for asthma. Also tell your healthcare provider about all of your medical conditions, especially if you have asthma, a history of depression, thyroid problems, Parkinson’s disease, diabetes, heart problems or high blood pressure, have any other medical conditions, are pregnant or plan to become pregnant, or are breastfeeding or plan to breastfeed. Epinephrine should be used with caution if you have heart disease or are taking certain medicines that can cause heart-related (cardiac) symptoms.
Common side effects include fast, irregular or ‘pounding’ heartbeat, sweating, shakiness, headache, paleness, feelings of over excitement, nervousness, or anxiety, weakness, dizziness, nausea and vomiting, or breathing problems. These side effects usually go away quickly, especially if you rest. Tell your healthcare provider if you have any side effect that bothers you or that does not go away.