Tags: Bever | Russia | over-the-counter | drugs

Pharmstandard to Spin Off Unit, Buy Bever for $630 Million

Monday, 08 July 2013 12:49 PM

Pharmstandard, Russia’s biggest pharmaceutical company, plans to spin off its business that makes branded, non-prescription drugs and agreed to buy Bever Pharmaceutical Pte Ltd. for $630 million.

Shares in the over-the-counter drug unit will be distributed proportionally to Pharmstandard stockholders, the Moscow-based company said in a statement today. The company plans a conference call on July 10 to clarify details of the spinoff, Pharmstandard said. The drugmaker announced the purchase of Bever, based in Singapore, in a regulatory filing.

Pharmstandard has been considering selling the over-the-counter unit, which may be valued at about $2.5 billion, people with knowledge of the matter said last month. Today’s announcement makes the prospect of a sale appear more likely, said Natalia Smirnova, a Moscow-based analyst for Deutsche Bank AG.

“It just shows that the company has intentions to sell this business,” Smirnova said in a telephone interview.

Pharmstandard plans a shareholder meeting Aug. 17 to vote on the purchase of Bever, according to the regulatory filing.

Citigroup Inc. was helping organize the sale process for the over-the-counter unit, the people with knowledge of the matter said last month. The business could provide a gateway to the Russian market, where the government has limited the reach of foreign drugmakers.

Market Share

Pharmstandard has said it held a 3.4 percent share of Russia’s $24.9 billion pharmaceutical market last year, putting it behind Swiss drugmaker Novartis AG and French pharmaceutical company Sanofi.

Over-the-counter drug sales fell 4.5 percent to 14.8 billion rubles ($445 million), accounting for 29 percent of Pharmstandard’s revenue. Sales growth came instead from the prescription-drug unit, with revenue rising 33 percent. Revenue from third-party over-the-counter products also rose 30 percent to 28.3 billion rubles.

Pharmstandard’s global depositary receipts fell 1.2 percent to close at $20.10 in London. Pharmstandard is also listed on the Micex exchange in Moscow.

Irina Bakhturina, a spokeswoman for Pharmstandard, didn’t answer her office phone and didn’t immediately respond to an e-mailed request for comment.

© Copyright 2021 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Companies
Pharmstandard, Russia's biggest pharmaceutical company, plans to spin off its business that makes branded, non-prescription drugs and agreed to buy Bever Pharmaceutical Pte Ltd. for $630 million.
Bever,Russia,over-the-counter,drugs
324
2013-49-08
Monday, 08 July 2013 12:49 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved