Sun Pharma to buy 85% stake in Russian pharmaceutical firm Biosintez

Sun Pharma has agreed to acquire 85.1% stake in JSC Biosintez, a Russian pharmaceutical firm engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region.

The equity consideration for the 85.1% stake is $24m. Sun Pharma would also assume a debt of approximately $36m as part of this transaction.

Biosintez is a Russian pharmaceutical company focusing on the hospital segment with annual revenues of approximately $52m 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.

Sun Pharma head of emerging markets Aalok Shanghvi said, “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, Russia country head Artur Valiev said: “This is an important milestone for us. “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 Anti-Monopoly Service and other closing conditions.

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