BioCentury
ARTICLE | Company News

PE firm acquiring majority stake of Ikaria's commercial business

December 27, 2013 1:06 AM UTC

Private equity firm Madison Dearborn Partners will acquire the majority stake in the commercial business of Ikaria Inc. (Hampton, N.J.) in a deal the parties said values the business at about $1.6 billion. Existing Ikaria shareholders -- including New Mountain Capital, Arch Venture Partners, Venrock Associates, 5AM Ventures and company management -- will retain a 45% stake in the commercial business. Ikaria's sole marketed product is INOmax inhaled nitric oxide, which the company markets to treat hypoxic respiratory failure in term and near-term infants.

Ikaria's existing shareholders will own a newco that will be spun out with about $80 million in cash and three of the company's clinical-stage programs, including two that use inhaled nitric oxide via Ikaria's INOpulse pulsed delivery system: IK-7001 to treat pulmonary arterial hypertension (PAH); and IK-7002 to treat pulmonary hypertension secondary to chronic obstructive pulmonary disease (COPD). Both are in Phase II testing. The third program, IK-5001, a bioabsorbable cardiac matrix, is in the PRESERVATION I registration trial to prevent left ventricular remodeling and congestive heart failure (CHF) after acute myocardial infarction (MI). ...