Pharmaceutical Company to be Sold at $310M

Kaléo, a Richmond-based pharmaceutical Company founded by twin brothers who invented an epinephrine auto-injector used to treat severe allergic responses, is being sold for $310 million to a worldwide credit investment firm. Marathon Asset Management’s acquisition of Kaléo should assist boost the homegrown growth by providing new products and opportunities to monetize its intellectual property assets. Marathon is not only investing in who we are now, but they are also committed to helping us develop our business.

As the Company grows, it gives opportunities for our employees, which is critical, as well as the patients we serve. This new ownership will fund a number of programmes that will benefit the community. It’s fantastic for investors since it gives them the liquidity that many of them have been yearning for a long time. The deal’s terms were not disclosed Monday, save that the $310 million base acquisition price includes potential net revenue-based milestone payments of up to $70 million in cash in 2022 and 2023.

The deal is likely to close by the end of the year. The Company headquarters at Shockoe Slip’s Turning Basin building will stay. The new owners also intend to keep the management team in place, including Gunn, the Company former chief operating officer who took over as CEO earlier this year after Spencer Williamson stepped down. Kaléo employs roughly 230 people, with about 100 in Richmond.

Eric Edwards and Evan Edwards, twin siblings who grew up in the Richmond region, launched Intelliject in 2004. In 2014, the Company was renamed Kaléo. After developing a tiny, easy-to-use device to give epinephrine in the event of an allergic reaction after suffering from life-threatening food allergies, the brothers launched Auvi-Q in the United States and Allerject in Canada.