Matrix Labs may divest Docpharma
28 Feb 2008
Mylan Inc's Hyderbad – based subsidiary Matrix Laboratories has announced that it will explore strategic alternatives, including a possible divestiture, of Docpharma, its marketing and distribution arm for generic pharmaceuticals in Belgium, the Netherlands and Luxemburg.
Matrix Laboratories had earlier acquired the Belgian drug firm in June 2005 for $263 million. (See: Matrix Labs acquires Belgian drug firm Docpharma for $263 m)
This was prior to Mylan's acquisition of Matrix, which was announced in August 2006 (See: Mylan Labs to acquire Matrix Labs for $736 million), and completion of the deal in January 2007. (See: Mylan completes stake acquisition in Matrix)
The US-based generics pharmaceutical company Mylan had taken a 71.5 per cent controlling interest in the Indian pharmaceutical firm. Subsequently, the company has realigned its strategic focus, with Mylan to yield greater value for shareholders.
With Mylan acquiring Merck Generics, the company will now refocus its business to reflect the importance of strategic arrangements with Mylan, in support of its enlarged global platform.
Strategic alternatives for Docpharma, up to and including divestiture, remain subject to approval by the company's shareholders. The company will provide more details once it reaches a definitive agreement.
Robert J Coury, the company's non-executive chairman said, "After careful review and upon recommendation from its senior management team, Matrix has decided to explore strategic alternatives for Docpharma including a potential sale. We believe our determination represents better growth in shareholder value for our shareholders. As it has continued to realign itself to predominantly serve Mylan's global generics business, Matrix will also continue to focus on its core API business and finished dosage form development as well as on the continued growth of its antiretroviral business. Docpharma offers a strong platform for the marketing and distribution of generic pharmaceuticals in the Benelux countries. We believe that Docpharma will be better situated in an organization that is compatible with its core competencies."
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