R-pharm is acquiring 51% of SIA International
R-pharm is acquiring 51% of SIA International. After a recent death of the owner of SIA International Igor Rudinskiy his family is following through with the plan to sell 51% of shares to R-pharm group of companies. Rudinskiy’s family will continue to own 49% of shares, and SIA will keep most of its current management, but R-pharm will have an option to buy the remaining stock. The exact transaction amount is not available, but according to the Head of the Center of Social Economics David Melik-Guseynov it is estimated at $550–600 million.
R-pharm is the hospital segment leader (company 2013 turnover was 56.1 bln rubles), but it is not yet present in retail. The recent purchase of a factory in Germany was done exactly with the purpose of manufacturing SIA’s product range. R-pharm Chairman of the Board Alexey Repik estimates total investment into SIA at tens of billion rubles.
SIA currently has 39 branches supplying 30 000 pharmacies and institutions all over the country. DSM Group estimates SIA turnover at 83.7 bln rubles in 2013, which puts it in the fourth place in the Rating of National Wholesalers.
R-pharm is continuing to grow and diversify its business. Having launched as a wholesaler in the hospital market the company rapidly expanded into manufacturing and in-licensing novel molecules abroad. Creation of a vertically integrated group of companies in retail is the next logical step. Currently R-pharm also invests 100% of its net profit into R&D both in Russia and USA that should result in a launch of its own innovative drugs in the near future.
Sources: Pharmvestnik, Vedomosti