Canadian generic drugmaker Apotex Health Corp. has officially filed for an initial public offering (IPO) on the Toronto Stock Exchange, as announced in a statement on Thursday. The company, headquartered in Toronto, plans to list under the ticker symbol APTX.
The share sale will consist of both treasury shares and a secondary offering, which includes holdings from controlling shareholder SK Capital Partners. The move comes after Bloomberg News reported in February that Apotex was seeking to raise between $750 million and $1 billion. If the offering reaches the upper end of that range, it would mark Canada's largest market debut since Definity Financial Corp. raised approximately $1.6 billion in late 2021.
Strong Financial Performance
Apotex's revenue for the fiscal year ending March 31 reached $3.5 billion, according to its preliminary prospectus, with net income of $374 million. This represents a significant improvement from the previous fiscal year (2024), when revenue was $2.9 billion and the company posted a net loss of $147 million. The financial turnaround underscores Apotex's strengthened market position and operational efficiency.
Debt and Use of Proceeds
As of March 31, Apotex carried $2.9 billion in debt under various credit facilities, including a fully drawn $800 million term loan. The company plans to use the net proceeds from the treasury-share sale portion of the IPO to repay this loan. Apotex will not receive any proceeds from the secondary offering component.
Strategic Developments
Apotex has recently made headlines as one of two pharmaceutical firms approved by Health Canada to produce generic versions of Novo Nordisk's Ozempic, a blockbuster diabetes drug. Earlier this month, Apotex became the first company to launch a generic semaglutide in Canada, positioning itself as a key player in the lucrative diabetes treatment market.
IPO Underwriters
The IPO is being led by RBC Capital Markets, TD Securities, and Bank of Nova Scotia, serving as co-lead managers, joint global coordinators, and joint lead bookrunners. BMO Capital Markets and Jefferies Securities are acting as joint bookrunners, ensuring a robust underwriting syndicate.
Company Background
Apotex was founded in 1974 by Barry Sherman, who grew it into one of the world's largest generic drug manufacturers. Tragedy struck in 2017 when Sherman and his wife were found dead in their Toronto home in a double homicide that remains unsolved. Despite this, the company has continued to thrive under new ownership and management, now seeking public investment to fuel further growth.
This IPO represents a significant milestone for Apotex, offering investors a chance to participate in the generic pharmaceutical sector's expansion. With strong revenue growth, a strategic focus on high-demand drugs like semaglutide, and a clear plan to reduce debt, Apotex is poised for a successful public debut.
