July 30, 2021 (MLN): After securing requisite approvals, AGP Limited (AGP) along with its parent company Aitkenstuart Pakistan (Pvt) Ltd (Aitken), through a Special Purpose Vehicle —OBS AGP (Pvt) Ltd, has successfully acquired a portfolio of 22 pharmaceutical brands (brands) from Sandoz AG, a company organized under the laws of Switzerland, which are commercialized in Pakistan under the Sandoz brand.
The acquired brands belong to various therapeutic classes including anti-infectives and oncology. The largest brand in the portfolio is Azomax, with a turnover in excess of PKR 2 billion during the last 12 months as per the Moving Annual Turnover (MAT) May 2021 industry report issued by IQVIA Solutions Pakistan Pvt. Ltd. on Pakistan Pharmaceutical Industry.
Some of the other well-established brands are Zatofen, Ternelin, Ospamox and Amoxiclav in the general medicines category, and Paclitaxel and Gemcitabine in the oncology segment.
The acquisition is expected to result in a significant increase in the consolidated revenues of AGP which is expected to cross PKR 10 billion over the next 12 months along with an increase in profitability, the notice issued to PSX said.
The Company has also initiated the process of upgrading and enhancing its production capabilities to commence in-house manufacturing of the majority of the acquired brands. This would result in economies of scale, operational synergies, and logistical efficiencies and in turn, maximizing shareholders' value.
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