[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]AGP Limited, a Pakistani pharmaceutical firm, has acquired a select portfolio of products from American firm Viatris Inc. via a Special Purpose Vehicle (SPV), a move approved by AGP’s board of directors last year.
On Friday, the pharmaceutical company informed the Pakistan Stock Exchange (PSX) of the development.
“We are pleased to inform you that, following the receipt of all necessary approvals, AGP Limited, through an SPV- OBS Pakistan (Private) Limited, has successfully acquired a portfolio of certain pharmaceutical brands from Viatris Inc., which are primarily commercialised in Pakistan under the brands previously owned by Pfizer Inc.,” read the notice.
In 2020, Mylan Pharmaceuticals merged with Upjohn, Pfizer’s off-patent medicine division, to form Viatris.
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According to AGP, the portfolio it has acquired includes a wide range of antidepressants, antihypertensive, and opthalmogoly products.
It stated that all of the brands, including Zoloft, Cardura, Lyrica, and Lipitor, are well-established with high brand equity and strong customer loyalty. According to a report issued by IQVIA Solutions Pakistan, the largest brand in the portfolio is Norvasc, which has a turnover of Rs1.3 billion over the last 12 months.
The acquisition is expected to significantly increase AGP’s consolidated revenues, which are expected to exceed Rs20 billion in the next 12 months.
In addition, the company stated that it will begin in-house manufacturing of the majority of these brands in the near future, which will result in “economies of scale, operational synergies, and logistical efficiencies, maximising shareholder value.”
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AGP is a subsidiary of OBS Pakistan, and the ultimate parent company is Singapore’s West End 16 Pte Limited.
In June of last year, AGP announced that its board of directors had authorised it to acquire a select portfolio of products from Viatris Inc. via an SPV. The company stated at the time that the SPV would acquire the brands through an optimal capital structure comprised of equity and debt in a 25:75 ratio.
It also stated that AGP will own up to 85% of the SPV.[/vc_column_text][/vc_column][/vc_row]
