KKR May Consider Options for Its Stake in Biotage Life Sciences

KKR & Co. Contemplates Sale of Biotage Stake

KKR & Co. is evaluating the possibility of selling its 17% stake in the Swedish life sciences company Biotage AB, according to sources familiar with the matter. This potential sale includes options ranging from a partial to a complete sell-off of its shares in the market. Notably, Biotage’s stock has surged by 36% in Stockholm trading this year, propelling the company’s market value to approximately $1.4 billion.

The stake that KKR holds is managed through Gamma Biosciences, a platform the firm created in 2020 dedicated to investing in life sciences tools. Despite Biotage's attempts to attract interest from potential buyers in recent months, no agreements have been finalized, indicating that these considerations are still in their initial stages. Representatives from KKR have refrained from commenting on the matter, and Biotage has yet to respond to requests for comments.

Biotage: An Overview

Biotage AB is known for providing technologies and solutions in genetic analysis and medicinal chemistry. The company boasts a global presence, employing 700 individuals and servicing clients in over 80 countries. This comprehensive operational scope makes Biotage a significant player in the life sciences sector.

Private Equity in Health-Care Sector

This move by KKR mirrors a broader trend among private equity firms to liquidate some of their health-care assets amidst growing sector activity. Examples of such actions include CVC Capital Partners Plc contemplating the sale of its controlling stake in the Italian pharmaceutical company Recordati SpA, and EQT AB considering selling Karo Healthcare, potentially valuing the Swedish consumer-health business at over €2 billion ($2.2 billion).

These strategic evaluations and potential sales signify the dynamic nature of the health-care investment landscape, with firms seeking to optimize their portfolio in a market showing robust activity.