Gedeon Richter Ltd. Buys Grunenthal GmbH Contraceptive Business for EUR 236.5 Million ($329.8 Million) Cash
11/4/2010 7:54:44 AM
Gedeon Richter Plc ("Richter") today announces the Acquisition of Grünenthal GmbH's ("Grünenthal") oral contraceptive (OC) portfolio. The cash purchase price amounts to EUR 236.5 million. Grünenthal is an independent, family-owned international research based pharmaceutical company headquartered in Aachen, Germany with a product portfolio which includes prescription oral contraceptives. The leading brand is the own developed BelaraTM.
Grünenthal's existing oral contraceptive business represents a strategic fit for Richter to both strengthen its presence in Western European markets and expand its oral contraceptive product portfolio.
"I'm confident that following the recently concluded PregLem acquisition this transaction will be a further important step towards the execution of our corporate strategy in Western Europe. Grünenthal's well established oral contraceptive franchise will boost our gynaecological sales as well as expand our female healthcare portfolio, providing an opportunity to further strengthen this specialty business segment in most of our key regions", said Erik Bogsch, Managing Director of Gedeon Richter Plc.Richter has purchased Grünenthal's OC business, including distribution and marketing rights in all markets worldwide where registration approvals have been granted. (Grünenthal does not hold registration approval in the USA). According to the agreement Grünenthal will retain sales and marketing rights for the portfolio in Latin America.
The acquired OC portfolio will provide a platform for Richter to establish its sales and marketing teams in key Western European countries, and in turn provide an excellent base for development of Richter Groups's presence in these markets.
According to the terms of the agreement the parties are obliged to complete the technology transfer before late 2012, prior to which Grünenthal will manufacture and supply to Richter the products for all markets.
Total worldwide sales of Grünenthal's oral contraceptive portfolio outside Latin America amounted to EUR 72 million in 2009. Germany is considered to be the largest market, representing approximately 70% of total turnover, while Spain and Italy together account for another 20% of sales according to the 2009 market data.
The closing of the transaction is subject to the approval of the German Anti-Trust Authority and this is expected to occur in December 2010.
About Richter Plc
Richter is a leading multinational pharmaceutical company headquartered in Budapest, Hungary. With consolidated sales of approximately EUR 1 billion (US$1.3 billion) in 2009 and a market capitalization of EUR 3.2 billion (US$4.3 billion), Richter is one of the largest pharmaceutical companies in Central Eastern Europe. Richter's core markets are in Central Eastern Europe and the CIS and it has a growing presence in the US through its strategic partners and in key EU countries through its commercial subsidiaries. The product portfolio of the company covers most therapeutic areas, including cardiovascular, central nervous system and gynaecology. Richter has the largest R&D unit in Central Eastern Europe and its original research activity focuses exclusively on CNS disorders with main clinical targets being schizophrenia, anxiety, chronic pain and depression. With its widely acknowledged steroid chemistry expertise, Richter is a significant player in the female healthcare field worldwide.
The Grünenthal Group is an independent, family-owned international research based pharmaceutical company headquartered in Aachen, Germany. Building on its unique position in pain, its objective is to become the most patient-centric company to be a leader in therapy innovation. Altogether, the Grünenthal Group has affiliates in 35 countries worldwide. Grünenthal products are sold in more than 100 countries and approx. 4,900 employees are working for the Grünenthal Group globally. In 2009, Grünenthal reached revenues of about EUR 881 million.
More information: www.grunenthal.com.