USD 60 mn deal: Sun Pharma to acquire Russian company

Top Stories

»	Pharma exports register 9.4 pc growth; industry aims for double-digit expansion in 2026–27: Govt
»	Surat emerges as 'Global Trade Hub' with $10.55 bn exports
»	Indian stock market posts mild gains this week amid AI-related IT losses
»	US trade gap widens; India deficit at $58bn
»	US court ruling reduces 18 pc reciprocal tariff uncertainty for India

SME Times News Bureau | 23 Nov, 2016
Drug major Sun Pharmaceutical Industries Ltd on Wednesday said it has entered into an agreement to acquire Russian pharma company JSC Biosintez for USD 24 million.

The Indian company will also assume Russian company's debt of USD 36 million, Sun Pharma said in a statement.

The total deal size works out to USD 60 million (USD 26 million for 85.1 percent equity stake and USD 36 million Russian company's debt).

According to Sun Pharma the acquisition will be done by its wholly owned subsidiary.

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 and others.

"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," Aalok Shanghvi, Head of Emerging Markets, Sun Pharma was quoted as saying in the statement.

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.

As per IMS (MAT September 2016), the Russian pharmaceutical market recorded sales of approximately USD 10 billion. The market recorded a growth of 7.4 percent in local currency terms as per IMS.