According to Reuters, Polish giant Polpharma is looking for investors who would join its bid to take over the largest Czech drug manufacturer in exchange for a minority stake in the American company Advent International, which owns Zentiva.
Negotiations between Polpharma and potential partners are at an early stage. The Polish company has yet to decide how to structure the joint offer, according to sources.
- The largest Polish manufacturer of drugs and pharmaceuticals.
- It was founded in 1935.
- The company was privatized with the participation of exclusively Polish capital in 2000.
- It is an international pharmaceutical player operating in the markets of Central and Eastern Europe, the Caucasus and Central Asia.
- It employs about 7,500 people.
Polpharma’s move comes after Advent rejected banks’ proposals for Zentiva’s initial public offering (IPO) last year because interest in the subscription waned in the second half of last year, Reuters sources said.
Polpharma needs a private investment company to help finance the offer. The offer would cost Zentiva three to 3.5 billion euros, which is up to four billion dollars. According to sources, the Polish company hired the American investment bank JPMorgan to select potential investors.
The Boston private investment company Advent bought Zentiva in 2018. The company produces about 500 types of drugs, mainly generic. These are products that contain the same active ingredient as the original new drugs. After the end of patent protection of the original preparations, generic drugs can be produced elsewhere and their market price usually decreases significantly. Zentiva’s medicines are sold in more than 40 countries. According to its website, the company has production plants in the Czech Republic, Romania and India.
According to a study by BCC Research, the volume of the generics market will increase from $ 411.6 billion in 2020 to $ 650.3 billion by 2025. This means that the compound annual growth rate should reach 9.6 percent.