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.

Ethypharm focuses on central nervous system diseases and the treatment of opioid addiction. Its products include the three ...