A strategic separation creates new growth

The story

A mid-cap pharma carried a mixed bag of legacy specialty brands and a promising biologics platform. The portfolio confused investors. The biologics unit deserved a growth multiple. The tail brands dragged returns and consumed scarce management time across quality, PV, and supply.

We designed a separation that created two fit-for-purpose businesses. First, a carve-out of 17 mature brands across 22 markets into a NewCo with a lean commercial model and externalized manufacturing. Second, a streamlined RemainCo centered on the biologics platform with a single therapeutic thesis. We set Day-1 readiness around five anchors: MAH transfers, QMS and PV independence, ERP and order-to-cash, supply continuity with dual-sourced CMOs, and a focused operating model.

We minimized TSAs to nine months, migrated 96% of SKUs without stockouts, and negotiated long-term supply at cost-plus with service-level penalties. NewCo adopted a zero-based go-to-market, cut low-yield promotions, and shifted to targeted hospital contracting. RemainCo redirected capital to two lead biologics programs, accelerated CMC with a parallel PPQ plan, and consolidated vendors to shorten cycle times.

Results followed. NewCo lifted EBITDA margin by 450 basis points in the first year and stabilized revenue decline at negative 2% with improved cash conversion. RemainCo expanded R&D velocity, advanced one program to Phase 3, and secured a strategic partner for Japan. The combined market value rose by 22% within six months of announcing the separation. Both entities now tell simple stories that investors can underwrite.