Sun Pharma announced the execution of definitive agreements by its wholly owned subsidiary, for the acquisition of 85.1% of JSC Biosintez, a Russian pharmaceutical company engaged in manufacture and marketing of pharmaceutical
products in Russia and CIS region.
The equity consideration for the 85.1% stake is US$ 24 million. Sun Pharma
would also assume a debt of approximately US$ 36 million as part of this transaction.
Biosintez is a Russian pharmaceutical company focusing on the hospital segment with annual revenues of approximately USD 52 million for 2015. It has a manufacturing facility in Penza region with capabilities to manufacture a wide variety of dosage forms including pharmaceuticals for injections, blood substitutes, blood
preservatives, ampoules, tablets, ointment, creams, gels, suppositories, APIs, etc.
According to 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 localization."
The transaction, expected to be completed by end of 2016, is subject to approval of the Russian Federal AntiMonopoly Service and other closing conditions.
As per IMS (MAT September 2016), the Russian pharmaceutical market recorded sales of approximately USD10 billion. The market recorded a growth of 7.4% in local currency terms as per IMS.