Sun Pharmaceutical Industries, India’s largest drug maker by sales and market value, said on Wednesday (23 October) that it has acquired majority stake in Russian drug maker JSC Biosintez. With this deal valued at $60 million (Rs 411 crore) in total, including a debt undertaking of $36 million, the Indian company will acquire 85.1 per cent stake in JSC.
JSC is currently engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region mainly focusing on the hospital segment had annual revenues of approximately $ 52 million in 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 among others.
“This acquisition is consistent with Sun Pharma’s philosophy to invest in strategic emerging markets,” said Alok Shangvi, head of emerging markets, Sun Pharma.
“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,” he added.
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, Sun Pharma said in a statement on Wednesday.
According to Artur Valiev, Country Head, Sun Pharma, Russia, this is an important milestone for the company as the local acquisition signifies Sun Pharma’s commitment to Russia and the Russian 2020 plan for localization.
As per pharma market researcher IMS Health, the Russian pharmaceutical market recorded sales of approximately $ 10 billion as on September, 2016. The market recorded a growth of 7.4 per cent in local currency terms as per IMS data.
BW Reporters
Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.
