PAI Is Said to Prepare $1.2 Billion Sale of Drugmaker Ethypharm

Private equity firm PAI Partners is exploring a sale of French drugmaker Ethypharm, a specialist in pain and addiction treatment, according to people familiar with the matter.

PAI is working with Jefferies Financial Group Inc. on an auction process that could value the Saint-Cloud, Paris-based company at over €1 billion ($1.2 billion), the people said. Other private equity firms and industry peers have shown interest in the business, the people said, asking not to be identified because the information is private.