Karachi: Sandoz AG has announced a deal with OBS/AGP Limited, a Pakistan-owned entity, to sell its products in Pakistan, said Melissa Cheah, Head of Communications, Sandoz International Region in an email.
“The Sandoz Business Division has had a presence in Pakistan for over 50 years and we have been delighted to have worked in a country of great skill, performance and commitment,” Melissa Cheah said. “The Sandoz Business Division has been continuously reshaping its portfolio and structure to compete sustainably in a challenging and changing generics market environment, for mid- and long-term business growth, so as to ensure continued patient access to its high quality generic products in Pakistan.”
As part of this process and following a deep analysis, Sandoz AG has announced a deal with OBS/AGP Limited, a Pakistan-owned entity, Cheah said.
She added: “We believe that the OBS Group, with its commercial scale, development capabilities, financial strength and future business plans, has the capacity to innovate the future growth of our current business in Pakistan, and also best to ensure the sustainability of local jobs and expertise while ensuring the continued supply of lifesaving medicines to patients and customers.”
In a notice issued to the Pakistan Stock Exchange (PSX), the Board of Directors of AGP Pharma has authorised AGP Limited to participate with its parent company Aitkenstuart Pakistan (Private) Limited (Aitken) through a Special Purpose Vehicle (SPV) set up by Aitken. This is for the purpose of acquisition of a selected portfolio of products which are commercialized in Pakistan under the Sandoz brand , including some widely used brands such as Azomax, Zatofen and Amoxi-Clav which are owned by Sandoz AG, a company organised under the laws of Switzerland.
The SPV will acquire the brands through an optimal capital structure comprising equity and debt in the ratio of 30:70. The company will own majority of the equity upto sixty-five percent (65%) shareholding in the SPV, said a company notice at PSX website today.
The acquisition is subject to necessary corporate and regulatory approvals and successful closing of the transaction with Sandoz AG.
The notice said: “The Board has authorized the Chief Executive / Non-Executive Director along with the Chief Financial Officer I Company Secretary of the Company or such other person(s) as may be authorized by them, to take all necessary steps to implement and execute the proposed transaction, to do all such acts, deeds and things necessary, and to deliver all such deeds, agreements, declarations, undertakings, collateral / securities and guarantees, including any ancillary document thereto or provide any such documentation for and on behalf and in the name of the Company as may be necessary or required or as they or any of them think appropriate for or in connection with or incidental for the purposes of concluding the proposed transaction including for the purposes of raising debt by the SPV.”
The board has further authorised the management to hold the extraordinary general meeting in due course of time for the purposes of seeking approval from the shareholders of the company in respect of the proposed transactions.
The acquisition of brands, which is subject to certain regulatory approvals and completion of certain closing conditions, is likely to increase the market share, bring operational and logistical synergies and enhance the product portfolio of the company, along with increase in the company’s revenue and profitability (consolidated topline is expected to increase by Rs 3 billion within twelve (12) months of competition), improve value proposition for customers, employees and other stakeholders and in turn maximizing shareholders’ value.
The company aims to continuously expand it in the coming years through its concerted sales efforts, marketing penetration and strong distribution network, the notice said.