Kelso Pharma, the specialty drugs business, has acquired Alturix Holdings, an English provider of branded medicines.

The transaction – the third by Borders-based Kelso – is a key step in building a specialty pharma business of scale in the UK and ultimately across Europe. 

Both firms supply branded specialty medicines that provide patient benefits and a reduced cost burden to the NHS.

Alturix, based in Milton Keynes, has seven branded medicines in the UK market, driving double digit revenue growth. A further two pipeline products in the Alturix portfolio will launch in the next 12 months which will expand the Kelso portfolio of 11 products.

All Alturix staff are expected to remain with the business post-acquisition.

Kelso Pharma, backed by Apposite Capital, the healthcare specialist private equity investor, is headed by Tom Stratford. He was previously CEO of Kyowa Kirin International, the European and US business arm of Kyowa Kirin, which purchased the company, then known as ProStrakan Group in 2011.

He said: “Our aim has always been to build a specialty pharma business that puts patients first and, in ALTURiX, we have found a complementary business that shares our philosophy of improving the lives of patients in a cost-effective and ethical way.

“This is a milestone acquisition for Kelso Pharma, doubling the size of our UK business and building a pharma company of scale. The Kelso platform is now positioned for further international growth as we seek to expand the markets for ALTURiX’s products, as well as further enhancing Kelso Pharma’s position as a partner of choice for other pharma businesses and innovative products.”

Apposite Capital invests in high potential commercial stage healthcare companies across Europe, with 13 healthcare businesses in its current investment portfolio.

Its managing partner, Sam Gray, said: “We are pleased to support this next strategic move for Kelso Pharma as its experienced management team builds a specialty pharma business of scale.”

Simon Fisher, co-founder of Alturix, said: “Kelso Pharma is ideally structured, suitably resourced and culturally aligned to drive the company further on its exciting growth trajectory and we believe that this is in the best future interests of both patients and prescribers alike.”