FAS approved the sale of "Biosynthesis"

The Federal Antimonopoly Service (FAS) has approved the sale of JSC Biosintez to the Indian Sun Pharma's subsidiary, Ranbaxy. However, to ensure competition, the agency issued an order to the buyer, obliging it not to reduce the production of 11 INNs (International Nonproprietary Names) for which Biosintez holds leading positions on the pharmaceutical market for a period of three years.

Sun Pharma announced the purchase of an 85.1% stake in JSC Biosintez on November 23, 2016. Two days later, the company applied to the FAS for approval of the deal, and on December 2, the deal was approved. The FAS permitted the Dutch company Ranbaxy to purchase up to 100% of Biosintez's shares.

Biosintez's portfolio includes over 180 drug names in various forms. According to the FAS, the company holds a dominant position for specific drugs of 11 International Nonproprietary Names (INNs), prompting the agency to issue an order to ensure competition for these drugs. Specifically, the new owner must ensure the fulfillment of all current contracts between Biosintez and its counterparties and, furthermore, must not carry out "economically or technologically unjustified" reduction or cessation of production of goods for which demand persists. If Biosintez decides to reduce the production or sales of a product by more than 10%, it must notify the antimonopoly service. The order will be in effect for three years from the date of the transaction.

As previously reported, under the terms of the deal, Sun Pharma will pay $24 million for the shares of Biosintez and will assume the company's debt of $36 million.

JSC Biosintez (Penza region) produces antibiotics, vitamins, antiviral, antifungal, anti-tuberculosis, cardiovascular drugs, and other pharmaceuticals. According to SPARK data, in 2015, JSC Biosintez's revenue amounted to 3.2 billion rubles, with a net profit of 42 thousand rubles.