Sistema PJSFC, a publicly traded diversified Russian holding company, announces the signing of a binding agreement to acquire from the investment company Marathon Group stakes in two pharmaceutical companies – Sintez Kurganskoe Medical Products and Goods Company ("Sintez") and Biocom ("Biocom"). The agreement was signed at the St. Petersburg International Economic Forum.
The transaction is expected to close within three months, following approvals from the Federal Anti-Monopoloy Service and completion of certain other conditions.
The purchase price will depend upon completion of a number of conditions specified by the parties.
Following the acquisition, Sintez and Biocom are expected to be integrated into Alium, a pharmaceutical company being created through the merger of OBL Pharm and Binnopharm. The combination with Sintez and Biocom will make Alium a top-3 Russian pharmaceutical company in the commercial segment. Alium's portfolio will include more than 500 products and its manufacturing capacity will consist of six production facilities in Moscow, the Moscow region, Kurgan and Stavropol.
Andrey Dubovskov, President and Chief Executive Officer of Sistema, said:
"The acquisition of Sintez and Biocom represents an attractive investment opportunity for Sistema. Both companies possess solid market positions. Moreover, we see an excellent opportunity to generate synergies through their combination with OBL Pharm and Binnopharm. The transaction will lead to the creation of one of Russia's largest pharmaceutical companies, possessing a diversified product portfolio, experienced management team, powerful manufacturing base as well as significant R&D potential. The merger will also drive optimisation of marketing and promotion costs, cuts in administrative expenses and an expansion of the sales geography, which in sum will result in growth in the value of Sistema's stake in the business."
Alexander Vinokurov, President of Marathon Group, said:
"Over the time that Marathon Group has owned Sintez, we have done a great deal to transform the asset: the enterprise was put on a new growth trajectory focused on expanding its portfolio of drugs in the commercial segment, production capacity was modernised and strengthened and record financial results were delivered. We are pleased that our assets will become part of a new ambitious project, and we wish the Sistema team success in this ».