Plan B morning-after pill owners considering $4 billion company sale, source says

Plan B morning-after pill owners considering $4 billion company sale, source says

Private Equity Owners Explore Potential Sale of Plan B

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The popular emergency contraception pill, Plan B, may be up for sale as the private equity owners, Foundation Consumer Healthcare, have reportedly hired advisors to explore this option. According to a person familiar with the matter, the potential sale could value the company at over $4 billion, signaling significant interest in the market. Although the process is still at an early stage, the potential sale provides an opportunity for new ownership to further develop and expand one of the leading emergency contraception brands on the market.

Plan B One-Step has been a prominent name in the emergency contraception market. It has been available over the counter since 2013, without any age restrictions. However, in December, the health regulator modified the labeling for the pill to clarify that it does not affect an existing pregnancy. This change in labeling aligns with the medical understanding of emergency contraception and aims to provide consumers with accurate information.

Foundation Consumer Healthcare, the company considering the sale, is not solely focused on emergency contraception. In fact, they own several other well-known brands, including Breathe Right nasal strips, Dimetapp (a medicine for cough and cold in children), and allergy drug Alavert. This diverse portfolio positions the company as a significant player in the over-the-counter healthcare products market.

The potential sale of Plan B and the broader conversation around contraception have been spurred by recent developments in the United States. The Supreme Court’s decision in June to overturn the landmark 1973 Roe v. Wade ruling, which recognized the constitutional right to an abortion and legalized it nationwide, has reignited discussions around reproductive rights. As a result, contraception has come under renewed focus.

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In 2017, Foundation Consumer Healthcare made a bold move to acquire Plan B and other emergency contraception brands. They purchased these brands from Israeli-based pharmaceutical company Teva for a considerable sum of $675 million in cash. This acquisition demonstrated their commitment to investing in and expanding the emergency contraception market. Now, the potential sale opens up new opportunities for both the current owners and potential buyers.

While the private-equity owners, Kelso & Co. and Juggernaut Capital Partners, have yet to comment on the potential sale, their decision to explore this option indicates a strategic evaluation of their portfolio. Whether they are seeking to capitalize on the brand’s success or to reallocate resources into other sectors, a sale could provide them with the means to achieve their objectives.

In conclusion, the potential sale of Plan B, one of the leading emergency contraception pills, presents an exciting opportunity for new ownership to shape the future of this vital product. With a diverse portfolio of over-the-counter healthcare brands, the current owners, Foundation Consumer Healthcare, have positioned themselves as an important player in the market. As discussions around contraception continue to evolve, the potential sale of Plan B further underscores the importance of accessible and accurate information surrounding reproductive health.

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