Pharmactive eyes international expansion as Siparex acquires minority stake
28 Jun 2021 --- Private equity group Siparex has taken a minority stake in Pharmactive in a multi-million euro deal. Pharmactive will now expand its portfolio of natural ingredients and international commercial presence.
“The goal for Pharmactive was to find a partner that shares our concern for consumer health and science-backed ingredients,” Marguerite Gerritsen, managing director at Pharmactive Biotech Products, tells NutritionInsight.
“Our objective is to focus even more on our internal innovation by expanding our investment in clinical studies. Secondly, with Siparex, we have an opportunity to review our manufacturing capabilities and possibly invest in new extraction technologies,” Gerritsen highlights.
Pharmactive’s global operation is concentrated in Europe, the US, and Asia, which accounts for approximately 85 percent of the company’s total revenue.
Pharmactive’s growth
Pharmactive is active in botanical ingredients and continues to expand and develop rapidly, the company says.
Pharmactive expects sales of approximately €12 million (US $14 million) by the end of the fiscal year 2021.
Pharmactive’s ingredient Affron offers mental wellness solutions.
“Siparex was looking for a strong partner with proven growth capabilities and one that could benefit from Siparex’s capabilities, such as its long and extensive experience in working with medium-sized companies, offering good best management practices and access to their international network of partners across the globe,” Gerritsen adds.
Additionally, a commercial impact is possible in the future, she predicts.
“Pharmactive is interested in expanding its commercial reach in the Asian market. The popularity of its premium products affron saffron extract and ABG10+, a black garlic extract, has fueled the company’s average annual sales growth of more than 23 percent.”
To support this, Pharmactive previously targeted the pharmaceutical market with its ingredients that aid in supporting mental health, such as affron saffron extract.
Pharmactive’s saffron extract was previously linked to improved psychological symptoms in perimenopausal women. Additionally, it has been recognized as an official aid for low mood-related issues in the US.
Saffron can also alleviate depressive symptoms in teenagers.
Transparency Triumphs
Pharmactive’s in-house laboratories investigate plant cultivation, active ingredient extraction and control throughout the entire upstream value chain.
“We are focused on increasing overall quality and transparency standards in the industry, so there is an effective and trustworthy way for people to evaluate natural extracts,” Gerritsen says.
Echoing this need, Innova Market Insights’ top trend for this year was “Transparency Triumphs.”
It highlights that consumers are interested in knowing what their products contain.
Additionally, brands are making efforts to meet the consumer demands of knowing what ingredients are in the product and how these are sourced.
By Nicole Kerr
