Cape Town – Ascendis on Wednesday said it was bulking up its presence in central and eastern Europe by spending a total of up to €65.45 million on a pharmaceutical distribution company in Romania and the owner of a large portfolio of complementary medicines in Cyprus. The acquisitive South Africa-based healthcare company on Monday announced it had bought the Southern African veterinary operations of Cipla India for R375 million.
The two new deals, with Romania’s Sunwave Pharma and NHP Natural Health Pharma of Cyprus, struck on Tuesday, are inter-conditional and would be treated as a single business combination, the company said.
Ascendis told shareholders that Sunwave, a distributor of complementary and alternative medicines and food supplement products in Romania, was the country’s largest player in the food supplements category and sixth largest player in the broader over-the-counter category.
NHP Pharma, in collaboration with its third-party suppliers, has developed a “vast product portfolio” of complementary medicines across nine major therapeutic areas, for which it owns the trademarks and other relevant IP.
Sunwave is NHP Pharma’s largest customer.
The company said the transactions were in line with Ascendis’ strategy to complement its growth in the domestic market with international expansion through organic growth and acquisitions of market-leading complementary brands in attractive regions, specifically emerging markets.
Read also: Ascendis buys Cipla units for R375m
Ascendis, which on Wednesday recorded a 66 percent increase in revenue to R3.1 billion for the six months to the end of December, said 43 percent of revenue was now generated in hard currencies outside South Africa.
The company said the new transaction would provide an entry into the Romanian over-the-counter market in line with the company’s strategy of focusing on the central and eastern European region.
It would also provide access to a vast portfolio of complementary medicines and pipeline of new products that could be sold into many territories.
The company said that Romania was seen as one of the top investment destinations in the region, presenting a fast-growing GDP, a population of approximately 20 million people, stable currency and declining unemployment.
“Ascendis is pleased to bulk up its presence in the European pharmaceutical industry having already gained traction in Hungary and Cyprus through its previous acquisitions of Scitec International and Remedica Holdings,” the statement added.
The transactions – which are subject to conditions, including regulatory approvals – are expected to close at the end of April.