17 July 2018 - Deborah Wilkes
Aurobindo is strengthening its generics and OTC presence in Europe by acquiring Apotex' businesses in Belgium, the Czech Republic, the Netherlands, Poland and Spain.
The Indian generics company said the acquisition was in line with its strategy to "strengthen and grow its European business and to expand in Eastern Europe".
Venugopalan Muralidharan – Aurobindo's senior vice president for European operations – commented that the deal would "expand our product offering, including OTC medicines in the Netherlands, and considerably strengthen our position in Eastern Europe".
"This acquisition is a key step towards our goal of becoming one of the leading generics companies in Europe," added Muralidharan.
Meanwhile, Canadian generics company Apotex said the sale would allow it to "focus resources on the Americas where strong demand for its portfolio continues". Apotex and India's Strides Shasun recently agreed to merge their Australian businesses (click here to read the News story).
Deal includes 88 OTC products
Aurobindo pointed out the deal with Apotex would add more than 200 generics and 88 OTC products to its portfolio, and would make it a "leading OTC company by volume" in the Netherlands.
The Indian company is paying EUR74 million (USD86 million) for the businesses, which had total sales of EUR133 million in the year ended 31 March 2018.
In Poland, Aurobindo said it would gain significant sales from the established brand name APO as well as a dedicated salesforce covering physicians and pharmacists.
The company added that it would become one of the top 15 generics players in Poland and the Czech Republic.
In addition, continued Apotex, the deal would strengthen its position in the Spanish generics market, and give it an entry into the retail generics space in Belgium.
Aurobindo currently has a presence in nine European countries – Belgium, France, Germany, Italy, the Netherlands, Portugal, Romania, Spain and the UK. Its European business includes generics, tender generics, branded generics and hospital generics.
The company recorded sales of EUR577 million in Europe in the year ended 31 March 2018.
Aurobindo said its total sales were around USD2.6 billion, of which more than 70% was generated in Europe and the US.
Closing of the transaction is conditional on the receipt of competition clearances from the Dutch and Polish authorities.
Aurobindo and Apotex will enter into a transitional manufacturing and supply arrangement.
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