Sun Pharma has closed the deal to buy 85% of Biosynthesis shares

Indian Sun Pharma has closed the deal to acquire 85.1% of the shares of JSC Biosintez, according to a statement from Sun Pharma on the Bombay Stock Exchange. Previously, the main owner of the Penza-based Biosintez was Boris Shpigel's Biotek Group.

The deal was closed on December 20, as follows from the Indian company's statement.

Sun Pharma announced the purchase of Biosintez shares on November 23, 2016. Under the terms of the deal, Sun Pharma was to pay $24 million for the shares and assume a debt of $36 million.

On November 25, Sun Pharma's subsidiary Ranbaxy submitted a petition to the Federal Antimonopoly Service (FAS) for approval of the transaction. The deal was approved as early as December 2. The FAS permitted Ranbaxy to purchase up to 100% of Biosintez's shares. At the same time, the agency issued an order obliging the buyer not to reduce the production of 11 INNs (International Nonproprietary Names) for which Biosintez holds leading positions in the pharmaceutical market for a period of three years. If Biosintez decides to reduce the production or sale of a product by more than 10%, it must notify the FAS.

JSC Biosintez produces antibiotics, vitamins, antiviral, antifungal, anti-tuberculosis, cardiovascular drugs, and other pharmaceuticals. In total, the company's portfolio includes more than 180 drug names in various dosage forms. According to SPARK, in 2015, JSC Biosintez's revenue amounted to 3.2 billion rubles, with a net profit of 42 thousand rubles.

Sun Pharma is one of India's largest pharmaceutical companies. Its revenue for the financial year ending in March 2016 was approximately $4.3 billion. Sun Pharma has 47 manufacturing facilities on six continents. The company is engaged in the production of drugs used in psychiatry, antibacterial therapy, neurology, cardiology, diabetology, gastroenterology, and other areas.