Pharmstandard agrees key terms for acquiring Singapore drugmaker

Russia’s largest pharma company Pharmstandard (PHST RU) – with a market capitalization of around $2 billion - has announced key terms of a possible acquisition of 100% share capital of Singapore-based Bever Pharmaceutical, at a lower price than the previously mooted $630 million (The Pharma Letter July 10).

The total consideration for the acquisition of Bever is agreed at $590 million and will be funded by the combination of Pharmstandard’s shares and GDRs owned by Pharmstandard-Leksredstva OJSC in the amount of $542 million (price per share of 2,235.4 roubles and price per GDR of $20.76) and cash of $48 million, which may be financed from external sources.

This would be the second acquisition this year for Pharmstandard, which recently won government backing to takeover Petrovax Pharm, one of Russia’s leading vaccines producers that had been an target of USA-based Abbott Laboratories (TPL May 7).