Cypriot pharmaceutical manufacturer Remedica announced its takeover by South-African Ascendis Health, which acquired 100 per cent of its share.
Following the acquisition, “Remedica will integrate the Ascendis Pharma-Med division and will become an integral part of a stronger, international pharma player,” Remedica said. “With its diversified portfolio of products, markets and customers, strong pipeline of new products and synergies with the Ascendis business in South Africa and Spain, Remedica is well positioned to deliver strong growth in the future based on this platform”.
Ascendis said that the price of the acquisition was 4.4 billion South-African rand or €260m in addition to an earn-out of 1.3 billion rand or €75m.
Charalambos Pattihis, Remedica’s chief executive officer, was quoted as saying that “our goal was, is and remains the sustainable development of Remedica and for that reason I can assure you that under the new umbrella we will not only continue the outstanding progress of the company, but we will thrive and achieve even more impressive results”. Pattihis and the remaining team of Remedica’s executives will retain their position.
Remedica said that it will play a central role in Ascendis’s pharmaceutical development strategy and the transaction will assist the Cypriot company remain in the generic medicine business in the future and “provide funding to embark onto its new phase of development”.
“Our strategy is to complement growth in the domestic health and care market through international expansion and by acquiring platform businesses offshore,” Ascendis Health CEO Karsten Wellner said according to a statement issued by the Johannesburg-based company. “This acquisition in the European Union will position us as an international health and care business of scale, offering an excellent Rand hedge for our South Africa-based business.”
“The business creates a strategic platform for international expansion and growth in the generic pharmaceutical industry in both Europe and emerging markets,” Wellner continued. “The manufacturing facilities can also be used by our other recently acquired pharma businesses Akacia Healthcare, in South Africa, and Farmalider, in Spain”.
According to Ascendis, Remedica supplies over 300 generic pharmaceutical products for the treatment of diseases such as malaria, or antibiotics, to circa 100 countries, primarily in emerging markets including the Middle East, Asia, Africa and South America and to the World Health Organisation and to the non-governmental organisations Medicins Sans Frontier and the Red Cross.