8. Altaris Capital relaunches 3M’s drug delivery business as Kindeva

3M Headquarters
Kindeva aims to expand its work across several disease areas, including platforms for immunotherapies, cardiovascular conditions and osteoporosis, plus microneedle-based systems for administering COVID-19 vaccines. (3M)

Deal value: $650 million
Announced: December 12, 2019
Closed: May 1, 2020

Though 3M said it aims to refocus on its core healthcare businesses, the selling off of its drug delivery arm might not make much of a dent: The divested division brings in about $380 million globally each year, or just over 1% of the conglomerate’s annual haul.

Still, the formerly and unimaginatively dubbed 3M Drug Delivery Systems was a major contract manufacturing partner for inhaled drugs, skin patches, and microneedle devices. 

Its $650 million transfer to Altaris Capital Partners included the lion’s share of the business and about 900 employees, but saw 3M retain control of its transdermal offerings, as well as a 17% noncontrolling stake in the independent company—since renamed Kindeva—that would allow the multinational to hold onto “a share in the value of the drug delivery business as it grows over the coming years,” according to 3M Chairman and CEO Michael Roman.

RELATED: Sandoz bags rights to generic Proventil from Kindeva

“We will be executing on an ambitious growth plan that involves significant capital investments and the addition of new jobs across all our operating regions,” said Kindeva CEO Aaron Mann, including breaking ground to expand its home base of St. Paul, Minnesota, and its locations in California and the U.K.

Kindeva aims to expand its work across several disease areas, including platforms for immunotherapies, cardiovascular conditions and osteoporosis, plus microneedle-based systems for administering COVID-19 vaccines.

It also recently scored a tentative FDA approval for the first generic version of AstraZeneca’s blockbuster Symbicort inhaler in partnership with the Mylan-Pfizer Upjohn venture known as Viatris.

RELATED: Altaris Capital shells out $1.1B for health imaging maker Analogic

Altaris, meanwhile, hasn’t slowed down. It recently picked up Perrigo’s generic pharma business—which specializes in topical medications, such as gels, foams and liquids—for $1.55 billion.

Its portfolio includes acne medications, steroid creams, and a copycat of Teva’s ProAir HFA inhaler for asthma and chronic obstructive pulmonary disease. Similar to Kindeva, it will operate as a standalone company should that deal close as expected later this year. 

8. Altaris Capital relaunches 3M’s drug delivery business as Kindeva