SA\'s Ascendis acquires Farmalider stake

Posted on :Wednesday , 26th August 2015

Ascendis Health today announced its first international acquisition with the purchase of a 49% stake in Spanish pharmaceutical group, Farmalider SA, for R210 million, with a right to acquire the remainder of the business in two further tranches over the next five years.

Madrid-based Farmalider develops and manufactures mainly generic pharmaceutical products, with a market leading position in the ibuprofen and paracetamol markets in Spain.

Ascendis aims to increase the revenue it earns outside Africa’s most advanced economy to 30 percent in the medium term from nine percent reported in its results for the six months to December 31, it said in a statement.

“Farmalider serves as a strategic platform for Ascendis to further expand into Europe,” the company said.

The South African group will have an option to up its stake in Farmalider to 80 percent by the end of 2018 and to buy the rest of the Spanish company’s shares by the end of 2020. Ascendis has the option to purchase the remaining 51% of Farmalider at pre-determined multiples from the founding shareholders in two tranches in 2018 (31%) and 2020 (20%).

The deal will see Ascendis retain Farmalider’s management and the staggered acquisition approach means Ascendis can get to know its partners, while gaining a better understanding of the new market.

Founded in 1986, Farmalider specialises in research, development, licensing and supply of products in generic prescription drugs, OTC and food supplement segments of the consumer health market. Products are currently registered for commercialisation by regulatory agencies in over 25 countries globally. The group operates in several therapeutic fields including pain treatment, oncology, cardiology, ophthalmic and dermatology via its licensing-out arrangements with major drug manufacturers including Stada, Cinfa, Ratiopharm, Teva, Apotex, Novartis, Sanofi, Sandoz and Mylan.

Dr Karsten Wellner the Chief Executive of Ascendis Health said; “We are so proud of this because it is our first international deal and it also makes sense from an economic point of view.”

“Spain’s recent economic problems also made this a fantastic deal because of the low costs of production, an improving economy and comparably lower salaries than elsewhere in Europe.”

Wellner said Ascendis was eyeing Europe, Australasia, New Zealand and Africa for regional opportunities.

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