India’s drug major Sun Pharmaceutical today said it has completed the acquisition of 85.1 per cent stake in Russia-based JSC Biosintez. All necessary formalities for the closure of transaction have been concluded and ” the process of the acquisition of 85.1 per cent of JSC Biosintez has been completed today,” Sun Pharma said in a filing to BSE. 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.
In an earlier filing to the bourses in November, Sun Pharma had 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 firm, engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region.
Biosintez focuses on the hospital segment with annual revenues of about USD 52 million for 2015.
“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,” Sun Pharma Head of Emerging Markets Aalok Shanghvi had then said.
“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 US$ 10 billion. The market recorded a growth of 7.4% in local currency terms as per IMS.