Sun Pharma enhances presence in Russia

Indian drugmaker Sun Pharma (BSE: 524715) along with its subsidiaries and/or associate companies), have executed a definitive agreement to take a majority stake in a Russian company in order to expand its presence in that market.

As a result, Sun Pharma will acquire an 85.1% stake in JSC Biosintez, which is engaged in manufacture and marketing of pharmaceutical products in Russia and CIS region. The equity consideration for the 85.1% stake is $24 million.

Sun Pharma would also assume a debt of about $36 million as part of this transaction. Biosintez is a Russian pharmaceutical company focusing on the hospital segment with annual revenues of around $52 million for 2015. It has a manufacturing facility in Penza region with capabilities to manufacture a wide variety of dosage forms including pharmaceuticals for injections, blood substitutes, blood preservatives, ampoules, tablets, ointment, creams, gels, suppositories, APIs, etc.