Luye Pharma Group Ltd. (02186.HK), a professional pharmaceutical enterprise focused on R&D and manufacture of innovative pharmaceutical products has announced the completion of its acquisition of the transdermal drug delivery systems (TDS) business, Acino which is located in Zurich, Switzerland, according to a press release.
Acino has established itself as a global leader in the niche transdermal markets. The company is said to be one of the largest independent TDS manufacturers in Europe, with a product portfolio primarily focused on higher margin specialty patch categories such as central nervous system (CNS), pain and hormone spaces.
Some of the company’s notable commercialized and complex formulations include Rivastigmine, Buprenorphine, Fentanyl and fertility control patch. Post acquisition, Acino will retain the marketing rights to certain of these patched in strategic emerging markets.
The transaction saw Luye Pharma acquiring the TDS business from Acino, through the purchase of the entire issued share capital of Acino AG and Acino Supply AG for an amount of €245 million (about US$260 million).
This acquisition will allow Luye Pharma to learn and adopt practices from the integration of its acquired business. Greatly enhancing Luye Pharma’s developmental efforts in R&D, manufacturing, international registration, and market promotion of new formulation products to international standards.
“As we execute our international strategy, this transaction serves as an important milestone,” says Yehong Zhang, the chief executive of Luye Pharma, “This acquisition will significantly enhance Luye Pharma’s international capabilities and accelerate its penetration into broader therapeutic areas and geographies.”
In addition, the TDS business, with its high-quality factories with EU GMP certificate and certification from the U.S. FDA, will help Luye Pharma in meeting and exceed international standards in production, quality control, and global operations.
At the same time, Acino with its mature sales network and international presence in many developed markets around the world – especially the European region will definitely aid the giant pharmaceutical enterprise to pave the way for its mission of globalization.
The global market sales of transdermal patches reached over 5 billion Euros in 2014 and are expected to hit 6.4 billion Euros by 2020, with a projected compound annual growth rate greater than 4%1. The global market for TDS business is huge with strong growth potential.
It would also appears that Luye Pharma is leveraging its growth on M&A as Luye Pharma has also previously acquired Healthe Care Australia in April this year for an undisclosed amount. Acino, which acquisitions has begun since July is, in fact, its second acquisition.
Still, Luye Pharma, the leading Chinese pharmaceutical enterprise will continue to serve and promote human health through professional technology, especially when the China mainland is an emerging market which is facing the challenges of an aging population that are accompanied by potential patients of chronic diseases, which represents a substantial market for TDS. At present, there are currently 260 million people suffering from chronic diseases in China.
Despite that, the company is moving forward and working to develop Luye Pharma into one of the most respected leading global pharmaceutical enterprises in the world. The enterprise, since inception, has adopted innovation, being one of the pioneering Chinese pharmaceutical enterprises to have conducted clinical trials in international markets. Luye Pharma currently has 5 innovative products at various stages of clinical research with significant breakthroughs in the U.S.
On a similar note, Luye Pharma is backed by CITIC Private Equity, which 5.92% ownership of Luye Pharma Group remains unchanged since 2014, according to the company’s 2015 annual report.
For more information, please visit http://www.luye.cn/
By Vivian Foo, Unicorn Media
This news is published on Reuters.