ISLAMABAD: AGP Limited (AGP), a leading Pakistani pharmaceutical company, has acquired a select portfolio of brands from American pharmaceutical firm Viatris Inc., a move that was authorised by the board of AGP in June last year.
The pharmaceutical company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“We are pleased to inform you that after securing requisite approvals, AGP Limited, through a Special Purpose Vehicle – OBS Pakistan (Private) Limited, has successfully acquired a portfolio of certain pharmaceutical brands from Viatris Inc. (“Viatris”) which are commercialised in Pakistan primarily under the brands previously owned by Pfizer Inc.”
The acquired brands comprise a broad range of antidepressants, anti-hypertensive and ophthalmology products. These brands are reported to be well established with high brand equity and strong customer loyalty.
The largest brand in the portfolio Norvasc has recorded a turnover of Rs 1.3 billion in the last 12 months as per Moving Annual Turnover (MAT) Dec 2022 industry report issued by IQVIA Solutions Pakistan Pvt. Ltd on Pakistan Pharmaceutical Industry. Some of the other well-established brands are Effexor, Xanax, Zoloft, Cardura, Lyrica, and Lipitor etc.
According to AGP, “The acquisiton is expected to result in a significant increase in the consolidated revenues of AGP which is expected to cross PKR 20 billion over the next 12 months. The company will also integrate and commence in-house manufacturing of majority of these brands in due course. This would result in economies of scale, operational synergies, and logistical efficiencies and in turn, maximising shareholders’ value.”
Last year in June, the board of AGP had given authorisation to acquire a select portfolio of products from Viatris Inc. through a SPV. The company back then said that the SPV will acquire the brands through an optimal capital structure comprising equity and debt in the ratio of 25:75.
At the time, AGP said that the acquisition will add over Rs 4 billion in the consolidated topline of the company within twelve months of the closing of the transaction. It also said AGP will own up to 85% shareholding in the SPV.
AGP was incorporated as a public limited company in May 2014. The Company got listed on PSX Limited on 05 March 2018. The principal activities of the Company include import, marketing, export, dealership, distribution, wholesale and manufacturing of all kinds of pharmaceutical products.
AGP Limited (AGP) began its commercial operations in 1989 as an independent pharmaceutical manufacturing company in Karachi, Pakistan. It has steadily grown through manufacturing and marketing products under licensing arrangements with many companies of international repute and also through manufacturing and marketing its own brands. Today, it is one of the largest pharmaceutical companies in Pakistan, providing a broad range of pharmaceutical products.
Aitkenstuart Pakistan (Private) Limited holds 55.80% of the share capital in AGP and is the parent company. The ultimate parent company of AGP is West End 16 Pte. Limited, Singapore.
Viatris was formed in 2020 through the merger of Mylan with Upjohn, a legacy division of Pfizer. It aims to become a global leader in ophthalmology (eye care).
