AFK Sistema cleared to take over Russian drugmaker Veropharm

14 November 2012

Shares in Russian companies 36.6 and Veropharm surged in Monday afternoon trading on the Moscow Stock Exchange on news the competition watchdog, the FAS, had cleared financial conglomerate AFK Sistema to buy up to 100% of drugmaker Veropharm, as had previously been mooted (The Pharma Letter November 6).

As of 2:51 pm Moscow time, shares in the debt ridden 36.6 pharmacy retail chain jumped 6.7%, while the stock of Russia’ third largest drugmaker Veropharm soared 9.7% compared with a 0.2% fall in the MICEX stock index.

According to RIA Novosti, Sistema could pay up to $326 million for 36.6's 51.8% stake in Veropharm, thus, with the FAS approval, if Sistema goes ahead and buys 100% of the drugmaker, the deal could be worth$253 million.

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