Recordati acquires Turkish drug producer
Posted by meb at October 30th, 2008
Italian pharmaceuticals company Recordati has signed an agreement to acquire Yeni İlaç, a Turkish pharmaceutical company, for 48 million euros.
In a statement yesterday Recordati noted that the purchase price will come from its own funds. The completion of the transaction, expected to take place before the end of 2008, is subject to the clearance of the relevant competition authorities, the statement stated.
Founded in 1927, Yeni İlaç is a well-known Turkish pharmaceutical company dedicated to the production, marketing and sales of both proprietary and licensed drugs. Its products are well known and the company has a leading market position in the area of urology. The company is also engaged in contract manufacturing for other pharmaceutical companies. Yeni İlaç has 300 employees, around 100 of whom are medical representatives. The company has a solid financial infrastructure and is growing. Sales have increased consistently over recent years and in 2008 are expected to be around 17 million euros. The Turkish pharmaceutical market is 13th worldwide and is continuously expanding, with a growth rate of over 15 percent in recent years, due to the growth and increasing average age of its population within a national economic context, which has a growing gross domestic product (GDP) and where healthcare expenditures are still relatively low.
Recordati has had a presence in Turkey for some time through licensing agreements with local companies that have allowed it to bring its original products to this market, particularly lercanidipine. Sales of its products currently stand at around 7 million euros and have important market shares in their respective categories. Its combination products for the treatment of cardiovascular hypertension are popular in the Turkish market.
“The acquisition of Yeni İlaç allows us to [have a direct presence] in a market with high growth rates, where, in addition, our products have already [had a successful presence] for some time,” said Giovanni Recordati, the company’s chairman and CEO. “The acquisition of Yeni İlaç represents a further step ahead in our strategy, which we confirm and intend to strengthen, to develop the direct presence of our group in the emerging markets of Central and Eastern Europe,” he added.
source: Today’s Zaman
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