Stout Advises Nimbus Health on Sale to Dr. Reddy’s

February 22, 2022

Stout announced that Dr. Reddy’s Laboratories (“Dr. Reddy’s”) has entered into a definitive agreement to acquire German medical cannabis pioneer Nimbus Health GmbH (“Nimbus Health” or “Nimbus”). Stout served as the exclusive financial advisor to the founders and shareholders of Nimbus Health.

The demand for medical cannabis has been on the rise for years since the legalization of medical cannabis by the German Parliament (Bundestag) in 2017. The German market is already valued at ~€122 million, with a compound annual growth rate (CAGR) of ~55% since 2017, making Germany one of the largest markets in Europe. Around 150,000 German patients already benefit from medical cannabis for their unmet health needs1.

Founded in 2018 by Linus Maximilian Weber and Dr. Alessandro Rossoni and backed by Mavericks Founders, an Angel syndicate from Berlin, Nimbus Health is one of the pioneers for medical cannabis in Germany and beyond. The Company is a fully licensed pharmaceutical wholesaler and manufacturer with its own warehouse facilities and an independent sales force promoting the highest-grade medical cannabinoid-based products to pharmacists in order to supply and help seriously ill patients. Nimbus has established a fast-growing, tech-driven, and highly compliant setup that is ideally positioned for further joint growth.

Dr. Reddy’s Laboratories Ltd. is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its businesses, Dr. Reddy’s offers a portfolio of products and services, including application programming interfaces (APIs), custom pharmaceutical services, generics, biosimilars, and differentiated formulations. Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology. Dr. Reddy’s operates in markets across the globe. Its major markets include the USA, India, Russia and Commonwealth of Independent States (CIS) countries, and Europe.

Linus Maximilian Weber, Founder and Chief Executive Officer of Nimbus Health, stated, “We are really excited about the journey ahead of us. Dr. Reddy’s truly believes in the tremendous potential of the market and trusts Nimbus’s highly efficient importing, registering, and launching platform for various medical cannabis brands. The close alignment between the values of Dr. Reddy’s and Nimbus gave us the confidence that we can continue to do what we do best: Growing and developing Nimbus following our mission to serve patients and improve their quality of life – further accelerated by Dr. Reddy’s. We’d like to thank the Stout Berlin team for their trusted advice and support along the entire process. The team has been fully dedicated to the success of this transaction.”

Maximilian Waldmann, Partner at Mavericks Founders, added: “As the first backers of Nimbus Health, we are incredibly proud and impressed of what Linus and Alessandro have built and accomplished. Always with a clear vision in mind, they have executed at highest standards, whilst maintaining a fast and lean operation. This transaction underlines, once again, the sheer potential and significance of innovative healthcare solutions, but also the importance of developing a strong relationship together with the founders, to focus on scaling a venture efficiently, which is our core focus at Mavericks. Timing has never been better to disrupt healthcare, and we are looking forward to following the success of this next chapter for Nimbus closely. Stout shared and understood this view from day one and brought a deep understanding of the space to the table, which helped tremendously with the execution of the deal.”

“Nimbus Health has established itself as a leading player in the fast-growing medical cannabis ecosystem in Germany and is perfectly positioned to continue this growth path. With Dr. Reddy’s, the team has found the ideal partner to jointly build on top of this excellent setup and accelerate the European expansion. We were truly impressed by the dedication and level of professionalism of the Nimbus team and enjoyed being part of their journey,” commented Mathis Wilke, Managing Director at Stout.

Stout Director Kevin Kissner was project co-lead on the deal, with further support from Stout’s Nansi Nistorova.

The closing of the transaction is subject to customary closing conditions.

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1Dr. Reddy's Laboratories

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