OAO Pharmstandard, Russia’s biggest pharmaceutical company, said it plans to complete the purchase of Bever Pharmaceutical Pte Ltd. by the end of the year and fold the company into its spun-off over-the-counter drugs unit.
Bever, based in Singapore, gained the rights this year to sell active pharmaceutical ingredients for Pharmstandard’s anti-flu medicine Arbidol and tranquilizer Aphobazolum, Pharmstandard’s Chief Executive Officer Igor Krylov said on a conference call yesterday. Bever, which didn’t have any sales last year, is affiliated with one of Pharmstandard’s board members, Krylov said. He didn’t disclose which board member.
Krylov’s comments follow a July 8 shakeup in which Pharmstandard said it had offered $630 million for Bever, without disclosing why, and announced the spin off of its own branded, non-prescription drugs business. Pharmstandard had been considering selling that unit, people with knowledge of the matter said last month.
Buying Bever and folding it into the spinoff will make the over-the-counter unit more profitable, Krylov said, predicting it may then become “attractive” to global buyers. The spun-off company will be publicly listed, he said. Pharmstandard plans a shareholder meeting on Aug. 17 to vote on the purchase, according to a July 8 regulatory filing.
Pharmstandard’s Moscow-listed stock has lost 17 percent and its London shares 33 percent in the two days since it announced the plan and said it will offer to buy out shareholders who don’t vote for the spinoff for 2,180 rubles a share, equivalent to about $16.50 a GDR. That was a discount of 2.3 percent to the July 8 closing price in Moscow and 18 percent in London.
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