Fertin Pharma is the world’s largest independent developer and manufacturer of medicated chewing gum
Fertin Pharma offers innovative, high-quality pharmaceutical and nutraceutical chewing gum products. Primarily within Nicotine Replacement Therapy (“NRT”), which is a pharmaceutical product used for withdrawal management in the process of tobacco cessation. Furthermore, Fertin develops pharmaceutical chewing gum with different APIs (MediChew) and nutraceutical chewing gum products (Nutraceuticals).
Fertin Pharma is headquartered in Vejle, Denmark, where local production and R&D facilities are located with both being FDA and EU GMP approved. Furthermore, Fertin Pharma has separate R&D and production facilities in India.
EQT acquired Fertin Pharma in January 2017 and entered into a partnership with the Bagger-Sørensen family, who will continue to have a strong representation in the company.
Market trends and drivers
Global NRT gum market is highly consolidated in all parts of the value chain, with two manufacturers controlling the vast majority of the world’s total production, serving primarily three global Pharma Companies.
The market benefits from stable underlying growth of ~4-5%, which is expected to continue going forward, supported by mega trends such as i) increasing government scrutiny of smoking due to growing healthcare costs, ii) more stringent regulations and tighter bans, iii) increased health awareness and spend on consumer health, and iv) shifting wealth and rise of the middle class in emerging markets.
The acquisition of Fertin Pharma was based on the strong market position in a stable and attractive market, holding a unique position from the combination of more than 100 years of chewing gum heritage, profound nicotine knowledge and strong pharma manufacturing capabilities. Furthermore, Fertin Pharma operates with well-invested and state-of-the-art facilities allowing for additional operational leverage of the existing set-up.
The value creation plan for Fertin Pharma includes continuing the growth of the core NRT business while exploring new avenues of growth, both from new geographies in e.g. emerging markets and launch of new products in NRT and adjacent categories.