Who wants to buy Plan B for $4B?
I finally made a Sporty and Rich pilgrimage.
Good morning good morning good morninnnnggggg.
💊 The PE owners of Foundation Consumer Healthcare are exploring a potential sale of Plan B One-Step. I heard this rumor at a dinner last week and I’m very happy someone published it. Private equity funds kind of have to sell companies every 3-7 years because their funds don’t live forever. They have to sell and return money to investorsPlan B obviously used to be the emergency contraception giant, but now there is Julie and Stix and $6 generic pills at Costco. The privately held company bought Plan B One-Step and other brands of emergency contraception in 2017 for $675 million in cash. The $4bn target price is a leak from their sell side bankers, so we’ll see what they get, but it will probably do pretty well, depending on how people price the risk of generics taking share. One dose of brand-name Plan B typically sells for around $46. And it’s probably quite profitable: It had a more than 85 percent profit margin when it was sold as a prescription drug by Barr, said David Woodburn, a former analyst who covered the company. Some people get mad that the owners are all male, but that’s the case for most of PE.
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