New acquisition to expand Amgen's presence in Turkey
Acquisition to gain Amgen 95.6 percent of shares for $700 million
THOUSAND OAKS, Calif.—Amgen and Istanbul-based MustafaNevzat Pharmaceuticals have announced an agreement by which Amgen willacquire 95.6 percent of shares in Mustafa Nevzat for $700 million in cash. Theacquisition of the privately held Turkish company gains Amgen a larger footholdin Turkey and surrounding areas, which represent priority markets for thecompany.
"This transaction represents an attractive opportunityfor MN, its employees and customers," Levent Selamoglu, general managerand CEO of Mustafa Nevzat, said in a press release. "The combination of MNand Amgen creates an innovation leader in Turkey with unique capabilities andscope to expand regionally and in other attractive high-growth markets. Amgen'sfocus and resources will also ensure continued investment in Turkey."
Mustafa Nevzat has nearly 90 years in the area and stands asthe leading supplier of pharmaceuticals to the hospital sector in Turkey, aswell as a major supplier of injectable medicines in Turkey. The company hasfour dedicated production plants "for finished dosage forms" in Istanbul, forthe production of "injectables such as liquid and freeze-dried ampoules andvials, sterile powder vials and oral dosage forms such as hard gelatincapsules, tablets, film-coated tablets and dry powder suspensions," the companyreports on its site. It has roughly 2,000 personnel, and reported revenues ofapproximately $200 million in 2011, growing, on average, at double-digit ratesin local currency over the past five years.
"Amgen is dedicated to making our innovative medicinesavailable to patients in major markets around the world," Robert A.Bradway, president and chief operating officer of Amgen, said in a pressrelease. "Together with MN's staff and management team, we plan to growour business with high quality and innovative medicines in Turkey and thesurrounding region."
Amgen's interest in Turkey and surroundings regions is partof its international expansion strategy, and in 2010, it established anaffiliate in Turkey, marketing two products.
The transaction follows other recent acquisitions for thecompany this year as it works to expand. Amgen announced on Jan. 26 that itwould be acquiring biotechnology firm Micromet, Inc. for $11 per share in cash,for an approximate total of $1.16 billion. The acquisition gained AmgenMicromet's proprietary Bispecific T cell Engager (BiTE) platform, includingblinatumomab, a phase II BiTE antibody indicated for the treatment of acutelymphoblastic leukemia as well as non-Hodgkin's lymphoma. The company announcedthe completion of its tender offer for the outstanding share of Micromet onMarch 7.
In another, more recent transaction, Amgen also announcedplans earlier this month to acquire South San Francisco-based KAIPharmaceuticals for $315 million in cash. The acquisition gains Amgen KAI'slead product candidate KAI-4169, an experimental therapy for the treatment ofsecondary hyperparathyroidism in patients suffering from chronic kidney diseasewho are on dialysis.
As for the acquisition of Mustafa Nevzat, the boards ofdirectors of both companies have approved the transaction. The acquisition issubject to customary closing conditions, including regulatory approval.