Alvogen to acquire majority stake in Kunwha Pharma; Alliance buys Opus

Privately-held US drugmaker Alvogen last Friday entered into an agreement to acquire a majority share in South Korea-based generic drugs manufacturer and marketer Kunwha Pharmaceuticals through a combination of new shares issued by Kunwha to Alvogen and the acquisition of shares owned by Hongsun Chang, Kunwha´s chairman and related parties. Financial terms of the transaction were not disclosed.

This transaction represents a next step in Alvogen’s strategy to establish a presence in attractive generic pharmaceutical markets globally. Kunwha will serve as a center of excellence and a platform for Alvogen’s products and support services in the Asia Pacific region as the company enters other regional markets in the coming years.

Commenting on the acquisition, Robert Wessman, chairman and chief of Alvogen, said: “This transaction is an important step in our strategy to build a strong regional player in the exciting Asia-Pacific region. Kunwha is a long-standing company with a broad range of marketed products and an excellent management team and workforce. South Korea provides an opportunity for Alvogen to grow its presence throughout the Asia-Pacific region, where the generic pharmaceutical sector has a higher growth potential than many of the mature Western markets."