Pakistan’s AGP Limited announced that it has successfully acquired a portfolio of 22 pharmaceutical brands from Sandoz AG, a company organised under the laws of Switzerland, which are commercialised in Pakistan under the Sandoz brand.
In a notice sent to the Pakistan Stock Exchange (PSX) on Friday, AGP Limited said that it acquired the brands along with its parent company Aitkenstuart Pakistan (Private) Limited, through a Special Purpose Vehicle — OBS AGP (Private) Limited.
The notice said that the acquisition is expected to result in a significant increase in the consolidated revenues of AGP, which is expected to cross Rs10 billion over the next 12 months along with an increase in profitability.
AGP posted a profit of Rs383.6 million in the three-month period that ended March 31, 2021 – the latest financial results available. The quarterly earnings were down 11.8% year-on-year.
“We are pleased to inform you that after securing requisite approvals, AGP Limited along with its parent company Aitkenstuart Pakistan (Private) Limited, through a Special Purpose Vehicle — OBS AGP (Private) Limited, has successfully acquired a portfolio of 22 pharmaceutical brands from Sandoz AG, a company organized under the laws of Switzerland, which are commercialized in Pakistan under the Sandoz brand,” read the notice.
It added that 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 Rs2 billion during the last 12 months as per the Moving Annual Turnover (MAT) May 2021 industry report issued by IQVIA Solutions Pakistan Pvt. Ltd. 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 company said that it has also initiated the process of upgrading and enhancing its production capabilities to commence in-house manufacturing of majority of the acquired brands. “This would result in economies of scale, operational synergies, and logistical efficiencies and in turn, maximizing shareholders' value,” added the notice.