Local manufacturing capability to enhance presence in Russian market
Sun Pharma announced the execution of definitive agreements by its wholly-owned subsidiary, for the acquisition of 85.1 per cent of JSC Biosintez, a Russian pharmaceutical company engaged in manufacture and marketing of pharma products in Russia and CIS region. The equity consideration for the 85.1 per cent stake is $24 million. Sun Pharma would also assume a debt of approximately $36 million as part of this transaction.
Biosintez is a Russian pharma company focusing on the hospital segment with annual revenues of approximately $52 million for 2015. It has a manufacturing facility in Penza region with capabilities to manufacture a wide variety of dosage forms including pharma for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories, APIs, etc.
Aalok Shanghvi, Head of Emerging Markets, Sun Pharma, “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.”
“This is an important milestone for us” said Artur Valiev, Country Head – Sun Pharma, Russia. “The acquisition signifies Sun Pharma’s commitment to Russia and the Russian 2020 plan for localisation.”
The transaction, expected to be completed by end of 2016, is subject to approval of the Russian Federal Anti-Monopoly Service and other closing conditions.
EP News Bureau