Pharmstandard has announced key terms for a possible acquisition of 100% of the share capital of Bever Pharmaceutical. It is expected that Bever will be included in a proposed spin-off of the company's branded over-the-counter business.
Total consideration for the acquisition of Bever is agreed at $590 million and will be funded by the combination of Pharmstandard's shares and GDRs owned by Pharmstandard-Leksredstva to the amount of $542 million and cash of $48 million, which may be financed from external sources. Pharmstandard-Leksredstva currently holds Pharmstandard's shares and GDRs on its balance sheet at approximately $475million.
The company’s rationale for the transaction includes securing a long-term fixed-cost supply of critical active pharmaceutical ingredients for two flagship OTC brands, Arbidol and Aphobazolum, as well as significantly increasing the company's profitability.
Bever is controlled by Bristley Enterprises, owned by Dr. Alexander Shuster, the company's non-executive member of the board of directors.