NEW YORK—Covington is advising Marathon Asset Management LP in connection with its definitive agreement to acquire Kaléo, a privately held pharmaceutical company, by funds managed by Marathon. The total base purchase price is approximately $310 million in cash, less certain adjustments, and includes potential net revenue-based milestone payments of up to approximately $70 million in cash for the 2022 and 2023 fiscal years.
Marathon Asset Management, with $23 billion of assets under management, was formed in 1998. 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.
Kaléo is 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 needs of the pharmaceutical industry. 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.
David Schwartzbaum and Jack Bodner led the team along with Michelle Chan, Jae Kim, and Ariadne Lyon (corporate/M&A). Additional support was provided by Michael Chittenden, Michael Francese, Jenna Wallace, Carolyn Rashby, Jason Levy, Michael Lloyd, Teresa Lewi, James Damon, and Brady McDaniel (employee benefits and employment), Scott Cunningham, Stefanie Doebler, Dalia Deak, Amy Leiser, and Annie Wang (food and drug), and James Dean and Stacy Kobrick (antitrust).
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