Sun Pharma makes strategic Russian firm acquisition
pharmafile | November 23, 2016 | News story | Research and Development, Sales and Marketing | Biosintez, Russia, Sun Pharma
Sun Pharmaceutical, India’s largest pharmaceutical company, has acquired Russian pharmaceutical company JSC Biosintez in a total deal of $60 million. The deal involves Sun Pharma taking on a 85.1% equity stake in the company, purchased for $24 million, and will also assume $36 million of the company’s debt.
The deal will see them take control of a company that focuses upon the hospital segment in Russia and has manufacturing capabilities. Its manufacturing facility is located in Penza region, which has the capability to manufacture various dosage forms, including pharmaceuticals for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories, and APIs. Biosintez recorded annual revenue of approximately $52 million in 2015.
With the Russian pharmaceutical market recording sales of $10 billion by September 2016 and a population of 143 million, it is an emerging market that could potentially reap big rewards. The market recorded a growth of 7.4% in the year to date.
“This acquisition is consistent with Sun Pharma’s philosophy to invest in strategic emerging markets. This transaction gives us access to local manufacturing capability across multiple dosage forms in Russia, enabling us to serve the Russia pharmaceutical market more effectively,” commented Aalok Shanghvi, head of emerging markets at Sun Pharma.
The transaction is expected to be completed by the end of the year. There is still the obstacle of the approval by the Russian Federal Anti-Monopoly Service, but this is not expected to be any cause for concern.
Ben Hargreaves
Related Content
Sun Pharma and Pharmazz enter license agreement for Tyvalzi in India
Sun Pharma has announced that one of its wholly owned subsidiaries has entered into a …
Spanner in the works for Sputnik V as missing data reported
Developers of Russia’s Sputnik V COVID-19 vaccine have repeatedly failed to present data to regulators, …
RDIF & Stelis Biopharma to supply 200 million doses of the Sputnik V vaccine
The Russian Direct Investment Fund (RDIF) and Stelis Biopharma have today announced a partnership which …
