The private equity owners of Stada Arzneimittel AG are weighing options for the German drugmaker, including a possible sale, people with knowledge of the matter said.

Bain Capital and Cinven are in the early stages of asking banks to pitch for roles on a possible transaction, the people said, asking not to be identified discussing confidential information. A sale could value Stada at €10 billion ($10.1 billion) or more, the people said.

The private equity firms are prepared to explore a range of options for Stada, including a sale that excludes its operations in Russia, one of the people said. They may also consider an initial public offering of the company, according to the people.

Deliberations are ongoing and Bain and Cinven could still decide to hold onto the asset for longer, they said. Representatives for Bain, Cinven and Stada declined to comment.

Bain and Cinven agreed to buy Stada for €5.3 billion in 2017. The deal gave the private equity firms control of what was one of the last independent generic-drug businesses in Europe.

Stada was founded in the late 19th century. Based in Bad Vilbel near Frankfurt, the company employs about 10,000 people and operates across more than 30 markets, including Germany and Russia, according to Cinven’s website. Stada saw earnings before interest, taxes, depreciation, and amortization rise 17% to €875 million last year.

To be sure, a deal for a company of Stada’s size could prove tricky to execute for private equity buyers amid the current challenges for financing large buyouts. Many big health-care companies, meanwhile, having been prioritizing deals for treatments of rare diseases over generic drugs. Novartis AG is preparing to spin off its generic-drug unit Sandoz later this year.

The value of deals targeting the health-care sector has risen 26% this year to $192 billion, data compiled by Bloomberg show. Private equity firms have been taking advantage of strong demand for such assets. Advent International is seeking a value of as much as $2 billion for ICE Pharma, as it prepares a sale of the Italian health-care firm.

Author: Aaron Kirchfeld, Dinesh Nair and Eyk Henning