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South Africa's Ascendis to Acquire Remedica, Scitec for Up To $565M

South Africa's Ascendis to Acquire Remedica, Scitec for Up To $565M

Remedica supplies over 300 generic pharmaceutical products to c.100 countries, primarily in emerging markets including the Middle East, Asia, Africa and South America. It supplies essential medicines such as malaria treatment and antibiotics to global non-governmental organisations, including reputable institutions such as the World Health Organisation, Medicins Sans Frontieres and the International Red Cross. Remedica manufactures its products from five GMP accredited manufacturing facilities in Cyprus, including a newly constructed world-class oncology facility. The business has a strong pipeline of specialty disease drugs, particularly oncology and HIV, which are expected to be launched over the next three years. “Remedica will transform Ascendis’ Pharma-Med division into an international pharma player,” said Dr Wellner. “The business creates a strategic platform for international expansion and growth in the generic pharmaceutical industry in both Europe and emerging markets. The manufacturing facilities can also be used by our other recently acquired pharma businesses Akacia Healthcare, in South Africa, and Farmalider, in Spain.” He said Remedica has a strong management team, with the CEO committed to remaining in the business for at least the next three years. Scitec Nutrition ranks among the leading sports nutrition brands across Europe, with a key presence in major markets like Germany, France, Spain, Italy, Hungary and Poland. The company’s products are also well represented in the Middle East, Russia, Australia and Asia, with sales recently launched in the USA. The company employs a combined distribution strategy of own sales representatives, own retail and distributor partners, depending on the country. The company was founded in 1996 by Zsolt Bengyel and is based in Budapest, Hungary. Its wide range of sports nutrition products, targeted at functional fitness, strength training and well-being, are marketed in nearly 90 countries worldwide. Scitec is vertically integrated and owns a modern manufacturing facility in the European Union, where the company produces over 280 products. The facility, which is GMP certified and US FDA registered, has recently been upgraded to increase capacity for growth. “Scitec Nutrition is a great brand and is well established in key global sports nutrition markets. This acquisition complements our global strategy as it provides a platform for international expansion in the sports nutrition and wellness industry.” “We will have the opportunity to accelerate the offshore expansion of the Ascendis sport nutrition brands, Evox and SSN, and will look to grow Scitec’s sales in Africa. The acquisition also provides the opportunity to extract synergies in research and development, production and the procurement of whey protein,” said Dr Wellner. The two transactions will be funded through a combination of new debt facilities of €180 million, a fully underwritten rights offer of R1.2 billion and vendor placements totaling R1.2 billion. The International Finance Corporation (IFC), a member of the World Bank Group, has committed US$30 million while another international investor has committed R180 million as part of the vendor placement. The transactions are subject to shareholder and regulatory approvals, including the JSE and SA Reserve Bank. Ascendis shareholders representing 63% of the shares in issue have formally supported the transactions. The effective date of the transactions is expected to be August 1, 2016. Photo: Ascendis Health CEO, Dr Karsten Wellner.]]>

Valeant Retains Goldman Sachs , Centerview to Explore Strategic Alternatives

Valeant Retains Goldman Sachs , Centerview to Explore Strategic Alternatives

Reuters reported. While Valeant has not decided to sell any major business thus far, the move represents the clearest indication yet that the Canadian drug maker needs to divest assets to bolster its finances. Valeant has turned to investment banks that include Goldman Sachs Group and Centerview Partners Holdings as it reviews strategic options and seeks advice on dealing with its creditors. Both Valeant Chief Executive Officer Michael Pearson and board member William Ackman, who is also the CEO of activist hedge fund Pershing Square, have said that the company was considering selling “noncore assets” to help trim its $30 billion debt pile. Since announcing its openness to asset sales, Valeant has received a flurry of inquiries from interested buyers, according to the sources. One coveted asset is Xifaxin, the largest product in Valeant’s gastrointestinal division, which it acquired last year as part of its $11 billion acquisition of Salix Pharmaceuticals. Other assets that have attracted interest from potential bidders include its aesthetics products, Obagi and Solta, and its skin care product, CeraVe. Valeant has been under pressure to reduce its debt burden after its stock plunged more than 80 percent since August due to increased political criticism of high drug prices and controversy around its relationship with a specialty pharmacy. Ratings agencies S&P and Moody’s have downgraded the company’s credit rating, and lenders have demanded higher coupon payments after the company violated certain debt agreements pertaining to the timing of the filing of its 10-K. Valeant has undergone changes in recent months such as adding several new board seats, including a spot for Ackman, and asking Pearson to step down. A search for a new CEO is under way while Pearson remains in his post, Reuters added. Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter products, and medical devices worldwide. The company offers Solodyn to treat red and pus-filled pimples of acne in patients, as well as Ziana, Acanya, Atralin, Retin- A Micro, and ONEXTON gel; Wellbutrin XL for major depressive disorder in adults; Jublia for onychomycosis of the toenails; Xenazine for chorea; Targretin for Cutaneous T-Cell Lymphoma; Arestin, a subgingival sustained-release antibiotic; and PROVENGE for the treatment of prostate cancer. It also provides Zovirax, an antiviral for recurrent herpes labialis and initial genital herpes; Syprine to treat patients with Wilson’s disease; Elidel to treat atopic dermatitis; Prolensa for inflammation and pain following cataract surgery; Duromine, a weight loss drug; and Lotemax gel for post-operative inflammation and pain. In addition, the company offers PreserVision, an antioxidant eye vitamin and mineral supplement; CeraVe to rebuild and repair the skin barrier; ReNu Multiplus to lubricate and rewet soft contact lenses; Biotrue for healthy contact lens wear; Ocuvite, a lutein eye vitamin and mineral supplement; Boston, a cleansing solution for gas permeable contact lenses; Artelac to treat dry eyes; AntiGrippin for acute respiratory and respiratory viral diseases, and influenza; and Bedoyecta, a vitamin B complex product. Further, it provides SofLens daily disposable contact lenses; PureVision, a contact lens; various ophthalmic surgical products; Biotrue ONEday lens; medical device systems for aesthetic applications; and Bausch + Lomb Ultra, a contact lens. Additionally, the company offers Tobramycin and Dexamethasone ophthalmic suspension for steroid responsive inflammatory ocular conditions; Cardizem CD to treat hypertension and angina; and Latanoprost for the treatment of glaucoma. Valeant was founded in 1983 and is headquartered in Laval, Canada.]]>