Sun Pharma to buy controlling stake in Russian pharma company JSC Biosintez for $24 mn

Indian generic drug giant Sun Pharmaceutical Industries Ltd today struck a deal to buy a controlling 85.1 per cent stake in Russian pharmaceutical company JSC Biosintez for $24 million.

The move comes a month after Sun Pharma agreed to buy US-based eye care specialist Ocular Technologies for $40 million. (See: Sun Pharma to acquire US-based Ocular Technologies for $40 million)

Under the terms of the deal, Sun Pharma will also assume JSC Biosintez's debt of around $36 million, taking the total deal size to $60 million, Sun Pharma said in a filing with the stock exchange.

The transaction will give Sun Pharma access to local manufacturing capability across multiple dosage forms in Russia.

The acquisition is expected to be completed by end of 2016, subject to approval of the Russian Federal Anti-Monopoly Service and other closing conditions.

Founded in 1992 and based in Penza, Russian Federation, Biosintez manufactures and markets pharmaceutical products in Russia and the Commonwealth of Independent States (CIS).

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 APIs.

Its products include tablets, ointments, suppositories, powders for injections, injections in ampoules, and bottles. It produces approximately 180 types of drug and pharmaceutical preparations from such pharmaceutical groups as: antibiotics; antimicrobial agents; bronchodilators; vitamins; hypoglycemic agents; diuretics; blood substitutes; anti-allergens and antiviral agents; anti-inflammatory, analgesic and antipyretics; sedatives, and anti-tuberculosis drugs, among others.

Biosintez OAO has a wholly-owned subsidiary CHOP Rubezh OOO and has annual revenues of around $52 million.

Aalok Shanghvi, head of emerging markets at Sun Pharma, 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.''

''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.''